1
The following is a dissertation by Niranjan Wickremasinghe which he submitted in January 2008 as a project report in partial fulfillment of the requirements for his Master of Business Administration degree from Sikkim Manipal University in India. Niranjan had a brief tea planting career from 1993 to 1998 and is now the Managing
Director of Medicheks Colombo (Pvt) Ltd, which provides medical investigations for HACCP, ISO and other quality certificate purposes. We are indeed indebted to Niranjan for submitting this work for the benefit of our readers.
A Study of Tea Plantation Operational Aspects in
Relation to Operational Workforce
by
Niranjan Christopher Wickremasinghe
ACKNOWLEDGEMENT
I wish to express sincere thanks and gratitude to my lecturer and
supervisor Dr. Lalith Senaweera, Deputy Director General of Sri Lanka Standards
Institution and Senior Lecturer ICBT for the guidance, encouragement and the
support given to me during the period of the MBA.
I extend my sincere thanks to Mr. Chamila Senaratne, Manager – Post
Graduate division ICBT and his team, Ms. Kumudu Abeywardene, former
2
Manager, all my lecturers and resource personnel and batch mates of the MBA
Program 2006/ 2008, who imparted their knowledge and experience and
encouraged me towards obtaining a MBA.
A special note of gratitude to Mr. Chris Gunaratne, ex-Group General
Manager Loinorn Estate/Senior Planter Bogawantalawa Plantations, Mr. T.T.
Christy, Operations Director/Senior Planter Agalawatte Plantations, Mr. Asanka
De Tissera, Manager Laxapana Estate, Assistant Managers, staff and all at
Laxapana Estate, for their co-operation and all the support extended to obtain
main research materials, Mr. Nishantha Premaratne, Manager Mahakoodugala
Estate, Mr. Kosala Wijesekera, Manager Wattegoda Estate, Mr. Sanjaya
Dissanayake, Manager St.Clair’s Estate, Mr. Saman Rajasinghe, ex-
Superintendent and present and past Superintendents and senior executives of the
plantations, field officers, members of the staff, Union Leaders and Labourers of
the above estates for providing me with a wealth of knowledge and information.
Finally I must thank my wife Cynthica, a critical admirer of my studies
and for always being behind me, encouraging and giving me her fullest support to
obtain the MBA, and my two little sons for sacrificing their time and bearing with
me, all my friends and colleagues who helped and encouraged me by extending
their guidance, support, suggestions and criticisms.
Without the help and support of them all, my hope of completing the MBA would
only have been a dream.
3
ABSTRACT
The objective of this study is to assess the impact of the Tea Plantation
operational aspects in relation to Operational Workforce.
Today, plantations face many challenges including a massive problem of shortage
of operational workforce in order to carry out day to day operations, even though
most of the operational work in estates requires semi-skilled workers.
By this empirical study I am going to highlight the importance of employing the
required workforce in order to maximize the yield, while harvesting good
standard tea leaves to produce the best quality teas. This will enable the
plantations to make good teas and gain the maximum profits, while following the
best agricultural practices in the long term.
For my comprehensive study on operational aspects in relation to the operational
workforce, I was with the superintendent stationed at Laxapana Estate, Maskeliya
for a period of five days, meeting and interviewing various personnel and going
through the estate books of labour statistics, information and data.
In addition, I visited three other estates and discussed the operational workforce
related problems with the Superintendents of those estates. In order to fine tune
the findings, I got expert advice and information from two senior planters.
The study’s findings enables the estate management to identify the main reasons
for the shortage of workers in estates, how important the HR functions are, ways
and means to follow the HR practices and arrest such problems and the best
adoption of recommendations. This would enable the estates to function smoothly
and in a more economical manner, while following the best agricultural practices.
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TABLE OF CONTENTS
Page No
Acknowledgement ………………………………………… 1
Abstract ………………………………………... 3
Table of contents ………………………………………... 4
(A) Executive summary
i) Introduction ………………………………... 7
ii) Aims and Objectives………………………….. 8
iii) Methodology ………………………………... 9
iv) Analysis ……………………………………… 10
v) Conclusion …………………………………… 11
vi) Recommendations …………………………… 11
(B) Chapter 01
An overview of the Organisation
1.1 Introduction ………………………………… 13
1.2 History ………………………………… 15
1.3 Special Features ………………………………. 17
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(C) Chapter 02
Project Overview
2.1 Introduction …………………………………… 22
2.2 Aims and Objectives …………………………… 23
2.3 Literature Review ………………………………. 23
2.3.1 HR Management ………………………… 24
2.3.2 HR Planning …………………………… 28
2.3.3 Motivation ……………………………… 33
2.3.4 Interview ………………………………… 46
2.3.5 Communication …………………………. 50
2.3.6 Management by Objective ……………… 54
2.3.7 Training and Development ……………... 54
2.3.8 Welfare Activities ……………………… 57
2.3.9 Job Satisfaction ………………………… 58
2.3.10 Incentives and Rewards ………………… 63
2.3.11 Performance Appraisal …………………. 73
2.3.12 Trade Unions …………………………... 82
2.3.13 Industrial Relations ……………………... 84
2.4 Problem Analysis ………………………………. 90
2.4.1 Quit …………………………………. 90
2.4.2 Poor Turnover …………………………... 92
2.4.3 Lack of Motivation ……………………… 93
2.4.4 Union Involvement ……………………… 93
2.4.5 Training and Development ……………… 94
2.5 Methodology ……………………………………. 95
2.6 Analysis ………………………………………... 96
2.7 Conclusion ……………………………………… 98
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2.8 Recommendation …………………………………. 99
2.8.1 Improve Welfare Activities ………………. 99
2.8.2 Training and Development ……………….. 104
2.8.3 Mechanisation of Operations …………….. 108
2.8.4 Outside Workers ………………………….. 109
(D) Chapter 03
Appendix 1 …………………………………………….. 112
Tea
Appendix 2 …………………………………………….. 113
Worker related
List of References ……………………………………..…. 123
Bibliography …………………………………………….. 130
List of Abbreviations …………………………………..…. 132
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(A) EXECUTIVE SUMMARY
i) Introduction
History
Tea is a perennial plant, belonging to the species Camellia sinensis or Camellia
thea and it is consumed as a beverage after brewing. Tea originated from China,
and is mentioned in a Chinese dictionary of 350 BC. According to the Chinese
writer Cha Pu, the practice of tea drinking began in the 6th Century AD and was
gradually introduced to Japan in 1000 AD. Tea was considered as a luxury
beverage used in ceremonies by the Emperors and the rich society of eastern
countries. By the middle of the 17th Century tea invaded Europe. The word tea is
derived from the Portuguese word ‘Tcha’, and Portugal claims to be the first to
introduce tea to Europe. Tea became popular in England in 1680.
By 1834 the British started cultivating tea in their own colony of India by getting
down plants, experts and labour from China. Today tea is considered as one of the
healthiest natural beverages and a stimulant fit to be consumed by people of any
age group.
The commercial planting of tea in Sri Lanka was introduced by a Scotsman,
James Taylor in 1867, on 19 acres of land on Loolecondera Estate, Hewaheta.
This was carried out with the idea of testing tea as a possible alternative crop for
coffee which was facing a leaf rust disease at that time. The first consignment of
tea was exported in 1872 and the production of tea topped the 1 million pound
(454,000 kg) mark by 1884.
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In Sri Lanka tea growing areas are divided into 3 main categories according to
elevation – they are High grown (above 1,220m), Mid grown (610m to 1,220m)
and Low grown (below 610m) areas situated at an elevation from mean sea level.
By the turn of the 19th Century, over 120,000ha of tea had been planted which
increased to 238,000ha by 1965. For the year 2006, total tea production was
310.8 million kg on 221,969ha of tea plantations. For decades, tea has been the
main agricultural export of Sri Lanka.
(Source: Sri Lanka Tea Board - Statistical Bulletin 2006)
In the year 1992, 460 State owned plantations were privatized and divided among
23 plantation companies. Since then the main objective of plantation companies
were to follow agricultural practices in order to maximize the profits.
Being the main agricultural export for 141 years, tea has contributed significantly
towards the economic and cultural development in Sri Lanka. It is an industry of
its own with a unique culture deeply rooted in our history. Hence it is the duty and
responsibility of the State and the plantation sector to take the industry forward
for the benefit of next generations.
ii) Aims and Objectives
The main objective of this study is to find out the reasons for the workforce
shortage and its effect on the tea plantations and to expose the causes for the
shortage and measures to prevent such situations.
Tea is Sri Lanka’s largest agricultural export crop accounting for almost 18% of
the entire export income. Labour intensive tea plantations are also the country’s
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largest employer occupying about 80% of the total workforce in the entire
plantation sector in Sri Lanka.
Operational Workforce shortage is the main cause for less production and poor
quality in tea. The quality in tea gives the highest demand and best price for
production (NSA). According to the Sri Lanka Tea Board report the total tea
export in the year 2006 was 315mn kg (without re-exports) with foreign revenues
topping Rs.86,337mn (ITC report in the year 2006). This was further increased in
2007 to reach US$ 1 billion (Rs.1,000mn) recording the highest earnings in the
history of the tea industry. Sri Lanka is the world’s leading tea exporter in the
world market with the well established brand name “Ceylon Tea” with lion logo,
followed by Kenya 314mn kg, China 285mn kg and India 204mn kg.
Therefore it is very important to look after tea plantations in a more lucrative
manner, giving more attention for its operations and smooth running of the
plantations. This will enable the tea plantation to enhance the quality tea that
would give us the edge over competitors in the world market. Sri Lanka is known
to the world because of its reputation for quality tea.
By this study, I have tried my level best to relate the operational aspects with
operational workforce, as the workforce involvement and their effect is very much
higher in the TEA PLANTATION in comparison to other industries.
(Source: Sri Lanka Tea Board Annual Report 2006)
iii) Methodology
For this, I have mainly used the theoretical knowledge obtained by following the
MBA course, referred books, magazines, publications, reports and other
literatures on tea plantations, interviewed estate management, staff and workers in
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order to analyze the practical problems faced by the operational workforce in the
estates. This analysis has to be reviewed by the top management of the respective
estates, by uplifting the living standards, welfare activities, motivating, training
and development and better communication with the workers. It could minimize
the out flow of estate workers from the plantations and reduce the poor out turn of
OWF.
This study was done at Laxapana Estate, Maskeliya, which was recognized as one
of the best tea estates in Sri Lanka and the most profitable property in the region
from year 2005 to date with the highest NSA. Another reason to select this
property is that, it follows all the agricultural practices and also obtained all the
quality standard certifications required by the international tea buyers.
iv) Analysis
Here, I have identified the highest workforce intensive operations in an estate, and
how the shortage of workforce effects the operations. This will affect the
production/quantity (Yield), price/quality (NSA) and the profitability of the
property.
The main field operations in a tea plantation are harvesting (plucking), applying
fertilizer (manuring), weeding, chemical spraying, pruning, and planting.
Out of the above operations, harvesting is considered as a day today operation,
and needs more than 60% of the workforce. In the tea industry, tea leaves are
harvested regularly with no resting, it is the only revenue generating operation in
a tea plantation. The next are applying fertilizer and weeding generally at monthly
intervals. Others operations such as pruning, planting etc. are considered as
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occasional. All these operations are considered as expenditure items in the estate
books of accounts.
v) Conclusion
In this study, the main observation is that the management does not practice
modern management methods and theories in this century old tea industry in Sri
Lanka. They still follow colonial, out dated ways and means of managing the
properties.
Here, I have mentioned the methods for uplifting the living and social standards,
finding solutions for the problems faced by the workforce, motivation methods
and introduction of modern workforce management theories to estates. By
motivation we could improve the attendance for work regularly and to perform
better by giving a higher output tea plantation targets.
It is mainly, by way of managing the OWF effectively and efficiently, identifying
and utilizing the workforce in the most viable manner and attending to their needs
and wants in a human manner, that you could find solutions for the shortage of
workers and the OWF related problems.
vi) Recommendations
The top management has to play a key role by introducing new management
styles to the estate workforce, management should identify and offer them better
living and social conditions, status and recognition. Introduction of new incentive
schemes and methods to motivate the workforce is also necessary. It is vital to
follow new agricultural techniques, methodologies, equipment and technology in
the plantations.
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It is also important to pay more attention to the welfare and social activities of the
entire OWF. By doing something extra, the management could get the co-
operation and better recognition from the workers. The support and co-operation
of the workforce is essential to run the property in a smooth and profitable
manner.
Getting away from traditional ways of managing plantations, treating the
workforce well, giving them due respect and dignity, education, awareness and
considering them as an integral part of the plantations, are the only ways that the
management could achieve their objectives. This would be a decisive factor in the
survival of the Tea Industry.
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(B) Chapter 01
AN OVERVIEW OF THE ORGANISATION
1.1 Introduction
Laxapana Estate is situated at Del House, Maskeliya in the Central Province of Sri
Lanka. It is at the foot of the sacred mountain Adams Peak, or better known as Sri
Pada which is believed to have the footprint of Lord Buddha. Laxapana Estate is
located at a distance of about 10km from the closest town Maskeliya, 140km
away from Colombo.
This plantation is at an elevation of over 1,520 meters above mean sea level,
which produces rich, high quality, high grown teas with a unique character.
The present Manager (Superintendent) who is in charge of the Laxapana Estate is
Mr. Asanka de Tissera, who has over 20 years experience in managing estates as a
Senior Manager.
After the privatization of the SPC and JEDB Plantations in 1992, the management
was taken over by 23 management companies with each getting an average of 22
estates, initially for a period of 5 years, which was later increased to 50 years.
With this privatization, most of the estates in the Makeliya region including
Laxapana Estate were grouped as Maskeliya Plantations Ltd, which is currently
managed by the Richard Peiris Group of companies.
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Laxapana Estate has a total extent of 737.05ha of land, of which 526.70ha are
under cultivation, out of which 397.30ha are in bearing. This estate is divided to 5
sub-sections called Divisions. Each division consists of many Fields. For each
division there is a field officer and assistants who serve as members of the staff,
who are responsible for the agricultural and human aspects of the division.
‘Kanganies’ are from the labour population and lead a set of workers who are
called a gang. Each division is under the supervision and control of an Assistant
Superintendent (SD) who is also responsible for all the functions and operations
in that division.
Laxapana has 1236 registered OWF, 59 staff members, and 3 senior executives
(two assistant superintendents and a factory manager) in the top management to
assist the Superintendent (PD) who is overall in charge of all the agricultural and
management aspects in the estate including the property and its people. Property
includes the plantations, trees, bushes, plants and nurseries, land and all other
natural resources including forestry, water resources, factories, buildings, workers
houses and sheds, all other movable and immovable assets and all stocks within
the estate boundary. In short the Superintendent is the caretaker of an estate, who
is responsible for all the operations, functions and the welfare of the workforce in
the estate.
After privatization the companies have added another responsibility to the
Superintendents to maximise profits from the estates following the accepted
agricultural practices.
(Source: Laxapana Estate Record Book and Estimate Documents)
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1.2 History
After the introduction of tea to Sri Lanka in 1867, it was found that native
community lacked the knowledge and experience of handling large plantations.
Therefore as an alternative, planters got down freely available cheap worker
migrants from South India. By year 1900 there were 300,000 Indian and Ceylon
Tamils and 50,000 Sinhalese to cover an area of 364,000 acres (147,250ha) of tea.
Until independence in 1948, entry for workers from India to Sri Lanka was open
and free.
By the year 1960 there were 197,181ha of tea with an approximate workforce of
500,000. In the 1970s there were 242,000ha of tea land and the workforce
comprised about 450,000 Indians and 100,000 Sri Lankans. During the period
1970 - 1975 about 200,000 Indian workers were sent back on the agreement with
India (Prime Ministers: Sirima/Shasthri pact). The balance, about 250,000 Indians
obtained citizenship in Sri Lanka.
By 1980, there were 244,000ha tea and the workforce was over 400,000. This was
an excess (surplus) situation as the yields and productions were low.
After privatization in 1992, the tea grown area came down to 187,000ha, due to
diversification of the low productivity areas by the management companies.
Those low yielding weak areas were used for timber wood plantations like
Eucalyptus S.P., and other cultivations like vegetables, fruits, and flowers etc.,
which were more profitable than growing tea in unsuitable soil conditions. Some
plantations have used these diversified areas for holiday seekers and tourism.
Tourism has become a good source of income for a lot of tea plantations.
16
With the introduction of high yielding VP cloned teas, the harvest and yields have
improved drastically, and as a result estates felt the need of more OWF.
The operations workforce situation in plantations has gone from one of surplus to
deficit recently, and it will be worse in the years to come. During the period 1980-
1996, the OWF in the estate sector declined by an astounding 30% to 280,500 in
1996. After the privatization of management in 1992, the operational staff force
further declined by 18%, and currently there is an average drop of 5% every year.
Many leave estates for other employment, out of which foreign employment is
significant. The average number of workers per estate is about 550 at present as it
has to be about 655 per estate. This low OWF situation tends to be particularly
pronounced in estates located close to urban centers like Nuwara Eliya, Kandy,
Badulla, Bandarawela and Ratnapura towns.
According to the Sri Lanka Tea Board statistics (Year 2006) the current registered
tea area in Sri Lanka is 221,969ha and production is about 310mn kg of made tea,
and available workforce for tea estates is at about 250,000. These statistics show
a considerable short fall of workforce.
With the continuous increase of production and the yields in the estates, the short
fall of workforce has become critical and creates an unhealthy situation in the
operations of tea plantations.
(Sources: Sri Lanka Tea Board Statistical Bulletin 2006, Central Bank report
2007, NIPM Referrals Handbook on Tea, Tea Planting in Ceylon)
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1.3 Special Features
Laxapana teas have been famous for quality, and always have a high demand by
the highest volume buyer in the world tea market Lipton’s and Brook Bond
companies, whose main offices are located in London, United Kingdom. The
Laxapana mark has topped the Colombo tea auction in main grades such as BOP,
BOPF, and Dust 1, on many occasions mainly due to high quality production
demanded by the reputed buyers. Therefore it is very important to pay more
attention for OWF related matters as OWF is the secret behind the best tea.
The salient feature of this estate is that it has topped the market getting better
prices whilst achieving the highest production. In tea terms, this is known as the
highest NSA and highest yields.
To make the best quality teas it is necessary to harvest green tea leaves from tea
bushes on time before it gets mature. The most suitable tea leaves for plucking are
the two leaves and a bud or tender young leaves. For this operation they have to
follow proper plucking rounds, which is to continue harvesting from each bush
without missing any at regular intervals.
This is the highest labour intensive operation on a tea plantation, and is mainly
done by female workers. Females account for 55-60% of the average workforce in
an estate. Tea harvesters who collect green tea leaves from the bushes are called
“pluckers”. The harvesting (plucking) operation is a selective process. It was
identified decades ago by the management that females are the best people for
these selective processes, as they take good care of the tea bush and the harvested
leaves. In this process the output of tea plantation females are always higher than
their male counterparts. Here, pluckers have to manually break the tea stem from
the bush with two leaves and a bud for best quality teas and transport it up to the
18
processing area without damaging the harvest. Damaged, bruised tea leaves
destroy the quality of tea and gives a bad end product and also causes heavy
wastage and loss.
The harvesting of green leaves on time results in higher productivity and yields. If
the plucking rounds are not maintained properly, this increases the growth and
height of the tea bush, making harvesting a difficult task. In this situation it is
recommended to prune the bush. Generally, a well maintained tea bush in high
grown areas are pruned once in 4 years when the bush is about 4 feet tall (the
average plucker is about 5 feet tall).
For harvesting a high yielding VP field, it requires about 15-20 workers/labourers
per hectare (LPH) per plucking round and about 4-6 rounds per month. For a
seedling field, the requirement of workers for harvesting is between 10 - 15
workers per hectare per round, and average 3-4 rounds per month. Generally men
are used in estates to harvest over grown (over 4 feet) high tea bushes and in
situations where there is a desperate need or shortfall of females to maintain
proper plucking rounds. This happens mainly after festive holiday periods like
New Year, Deepavali festival, Kovil festivals (Thiruval), Thai Pongal and during
worker strike or go-slow situations which are very common in tea plantations.
Generally there are about 40-60 workers under a supervisor and a Kangani in a
plucking gang, where they are responsible for harvesting the crop in one section
of a division. In an average size division (about 100ha) there can be up to 3
female plucking gangs, and in special times 1 men plucking gang in a division.
Generally the average harvest per day by a plucker is 1.75 times the LPH. For
example if the LPH in a field is 10, then the pluckers expected daily average
harvest is 17.5kg of green leaf.
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On Laxapana estate, the given norm for harvesting is 18kg per day and for excess
above the norm an incentive is paid additionally per kilo of green leaves.
The second most important labour intensive operation in an estate is weeding.
This could be done in many ways. The most environmental friendly way is to take
out unwanted plants manually from the site. This is also an economical method as
the removed weeds could be used as manure after turning them to compost. Men
are used to clean the property, especially to take out perennial flowery, hard
weeds and creepers. Another advantage of using manual labour is that they could
remove only the unwanted plants/weeds leaving the useful plants in the site, it is
also called selective weeding. Manual weeding is considered as the best method
of weeding, especially where the immature tea plants are considered. This method
of weeding is mostly used during the time period when the harvest is less, to give
more work to the labourers. In an estate generally 15-20 LPH is used to clean an
average weedy field, and this operation is done 1-2 times per year for a field and
followed up by 2-3 times a year with spot manual weeding using 5-8 LPH.
Chemical weeding is the most common and convenient way of eradicating weeds
from the estate. According to the growth and variety of weeds, selected chemical
or mixture of chemicals are used. Application of weedicide is done by sprayers at
the rate of 3-4 LPH, A spraying gang has 10-14 workers under a kangani.
Generally chemical weeding is done for a field 1-2 times a year followed by spot
spraying at the rate 1-2 LPH, 2-3 times a year. This method could be harmful if
the protective steps are not followed. There is a high possibility of soil and water
resources getting toxic due to excessive use of chemicals.
Applying fertilizer or so called manuring is vital to get a better harvest. Manuring,
replaces the different chemical components back to the tea bush. There are macro
and micro elements of fertilizer. Nitrogen (N), Phosphorous (P), Potassium (K),
20
are considered as main macro components and Magnesium (Mg) , Calcium (Ca),
Zink (Zn) , Boron (Br), Ferrous (Fe), are micro components used in very small
quantities.
Fertilizer could be applied manually, distributing the required chemicals directly
to the roots of the tea bush. For this operation the required LPH is 3-5 and carried
out with the onset of rain. At Laxapana, application of fertilizer is done 3-4 times
per year for VP teas and 2-3 applications for seedling tea. There are instances
where some nutrients are applied as a liquid spray. This is called folio spray and
it is done at the rate of 2-3 LPH. Here, chemicals are sprayed on to the tender
leaves of the tea bush (flush), for VP fields there will be 3-4 applications per year
and for seedling 2-3 times per year.
The variety of fertilizer and the frequency of applications are decided based on
the yield and the soil conditions.
Other than the main operations mentioned above, OWF is required for pruning of
tea bushes. Pruning is the process of artificial removal of leaf bearing branches of
the tea plant. It may involve all or more branches being removed from a tea bush
at a height of 18-24 inches from the ground. In this estate the pruning average
height is about 20-22, inches according to the slope of the field.
Pruning needs workers at the rate of 45-55 LPH, at the intervals of 4 years on VP
teas and 4-5 years on seedling tea fields.
Generally, 25-35 % (1/3), of the total matured tea area of an estate is pruned per
year, followed with many other operations related with pruning, such as cutting
drains, applying dolomite, planting and re-supply of shade and other trees,
cleaning the moss and ferns on tea bushes, applying lime etc.
21
New clearing operational work like preparing fields, holing, planting,
transportation, etc. also requires a large number of workers. New clearing requires
12,000-14,000 VP tea plants per ha, with re-supply.
Laxapana Estate generally requires 40-50 labourers per day for the manufacturing
process of tea at the factory. The worker requirement depends on the capacity and
the harvest (estimate: 1 worker for 55kg of made tea). An average of 12,000kg,
green leaf is used for daily production of made tea at an out turn of 22.5% (E.g.
12,000 kg green leaves gives 2,700 kg made (black) tea).
(Source: Handbook on Tea, Plantation Management in the New Millennium,
Estate Estimates and Books of Accounts)
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(C) Chapter 02
PROJECT OVERVIEW
2.1 Introduction
Here, we are analyzing the Operational Workforce related problems. According to
my study, the problems and challenges faced by the OWF is the main reason for
the shortage of labour force on plantations. The present generation in plantations
is not willing to stay on in estates like their parents and grandparents. A few
decades back the plantation workers did not have a life beyond the estates. The
present generation dislikes continuing the plantation work done by their ancestors.
The main reasons identified by me, behind the new generation’s dislike on
working and living on plantations are:
a) Lack of motivation and appreciation for estate work
b) Not recognized by the communities and the State leaders
c) Poor living and sanitary conditions in estates
d) Poor health and education facilities
e) Higher cost of living
f) Less exposure to the outer world
g) Less social welfare and leisure activities
h) Bad influence by unions and trade union activities
HR Planning would help the top management of the estate to find remedies for the
shortage OWF requirements.
23
2.2 Aims and Objectives
With the discussions had with the OWF, staff, and management of the estates, I
have tried my best to analyze the above situations to find solutions to the best of
my knowledge. My main intention is to reduce the out flow of OWF from estates
and to motivate them to attend work regularly, by providing best alternative
solutions for their problems, introduce the ways and means of training and
development to educate them, by motivating, rewarding and appreciating the
service rendered by the OWF in estates to give proper recognition, and to improve
on welfare activities. This will enable them to feel their importance within the
industry as well as to the entire country.
The work done by the OWF has to be enjoyed by the workers. It is important to
provide good working conditions in order to achieve better results from workers.
By introducing better welfare systems, protective and safer equipments, methods
and technologies and other facilities, the barriers of communication between the
Management and Workforce can be gapped. This relationship building process
will have long term benefits to the estates.
2.3 Literature review
I have referred to and taken materials and notes from various books, magazines,
publications and periodicals etc., on HR Management and Plantation
Management. By reviewing and analyzing these, I have tried my level best to find
the relationship with OWF with regards to the operations on plantations, the tasks
(norms) performed by them, and the actual requirement of OWF for future
operations.
24
As in any other organization in plantations too, the following functions are
performed by a manager.
a) Planning
b) Organising
c) Staffing
d) Directing
e) Motivating
f) Controlling
g) Co-ordinating
h) Communicating
Out of the above, selected functions which, I feel important for tea plantations are
highlighted.
In the 1950s the popular management abracadabra used to be POSDCORB known
as the ‘principles of management’. The knowledge about the management and the
organisation was usually classified under the broad heading of planning,
organizing, staffing, directing, controlling/co-ordinating, reporting and budgeting.
2.3.1 HR Management
Like in other industries, managing estates and its people has to be done in a
scientific manner. This scientific management method was first introduced by
Frederick W. Taylor who is known as the father of scientific management. Taylor
summed up his approach as:
Science, not rule of thumb
25
Harmony, not discoed
Co-operation, not individualism
Maximum output, in place of restricted output
The development of each man to his greatest efficiency and prosperity
According to Taylor “Planning should be the result of co-operation between the
management and workers and that provision should exist for compensating the
personnel with financial incentives”.
As part of scientific management methods Gantt charts, Tasks and bonus wage
systems were introduced. (Henry Gantt, Frank and Lilian Gilberth)
These systems are widely used in estate management.
To develop a spirit of co-operation between workers and the management welfare
systems were introduced (Robert Owens). This was called the introduction of
personnel management systems to the industries. According to Owens the returns
from investing on HR would be much higher than investing in machinery and
equipment.
Division of labour was introduced as a measure to reduce waste and gain
efficiency stemming from familiarization with special work and use of tools. This
has stimulated workers inventions pertaining to tools and methods (Charles
Babbage).
The analysis of jobs in terms of workers physical, mental and emotional
requirements and development of testing devices for selecting work were
introduced to the industries (Hugo Munsterberg).
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In modern HR management priority is given for Human relations movements.
This movement is characterized by its focus on group behavior and workers
feelings as they relate to productivity and morale (Elton Mayo).
Elton Mayo and others of the Harvard Graduate School of Business
Administration conducted experiments at the Hawthorne plant of Western Electric
Company in Chicago.
The modern HR management theories were based on human behavior. It was
proven that productivity depended at least in part on the extent to which the
workers became a team and co-operated wholehearted and spontaneously.
Workers co-operation and enthusiasm seems to be related to the interest of the
work group shown by the supervisors and experimenters, the lack of coercion or
force, and the extent to which workers participated in making decisions and
changes that would affect them.
The behavioral science movement is an outgrowth of the human relations studies.
On the behavioral method observations and surveys in disciplines like sociology,
anthropology, psychiatry, social psychology and psychology, the following
theories were formulated:
a) Maslow’s need hierarchy theory or deficit theory of motivation
b) Hertzberg two factors theory of motivation
c) McGregor’s theory X and theory Y
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The evolution of HR development concepts can be traced in terms of six
approaches. They are:
Industrial Relation approach (IR)
Personnel Management approach (PM)
Human Resources Management approach (HRM)
Human Resources Development approach (HRD)
Strategic Human Resources Development approach (SHRD)
New-age Human Resources Development approach (NHRD)
The IR approach was essentially legalistic in nature and was primarily based on
the “conflict model” wherein conflicts between management and the workers are
resolved within the legal framework.
PM approach also focused on 4 R’s namely, recruitment, retainment,
retrenchment, and retirement.
With the arrival of HRM approach, the scope of personnel management expanded
to treating the human resources as “Assets”, which should be effectively managed
in congruence with the organizational goals. Accordingly, the focus on HRM has
been on manpower planning, selection and induction, performance appraisal, job
satisfaction, training and development, wage and salary administration, worker’s
welfare and working conditions, dignity of labourers etc.
In due course, the concept of HRM evolved into the idea of HRD. Thus issues
such as employee involvement, empowerment, self-development, team building,
converting the problem employees or ‘liabilities’ into assets, quality of work life,
institution building, organizational development and change, capacity building,
worker’s wellness, work dignity and 360° performance appraisal etc. assumed
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significance in the management of organisations. The 4 Ts, namely, trust,
transparency, truthfulness (in inter-personnel relations) and team work, became
the main words in HRD. Further, ideas from TQM were also integrated with
HRD.
The notion of HRD then naturally evolved into the concept of Strategic HRD,
where there is an integration of the HRD functions with the organization’s
‘strategic intent’ as articulated by Grayhamel and C.K. Prahlad (1994).
Accordingly, the HRD department gets involved in restructuring and re-
engineering, mergers and acquisitions, turnaround, de-layering, converting the
organization into a ‘learning organisation’ as defined by Peter Senge (1990), and
similar other issues of strategic importance. With the arrival of spirituality at work
movement, the concept of HRD is now evolving into New Age HRD. It suggests
that ‘character-competence’ of the key members of organization is more
important than the ‘core-competence’ of the corporation. Thus, we find that the
idea of HRD has traveled a long way from its IR orientation to New age
orientation.
2.3.2 HR Planning
The Estate Superintendent has to be an excellent human resource manager as most
operations in plantations involve the human asset. If the OWF is managed
efficiently, managers could gain excellent results. HR Planning is the first step in
HR management. HR planning is the process of forecasting, developing and
controlling. It is a process for an organization to ensure, that it has the right
number of people and the right kind of people at the right places at the right time
doing work for which they are economically most useful (Geisler).
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Prof. Kris Agrys says planning is needed when the rate of change in the external
environment is greater than the rate of change in the internal environment. If
proper planning fails then closure is in sight.
According to Wendell French, HR planning is the process of assessing the
organization’s HR needs in the light of organizations goals and making plans to
ensure that a competent, stable workforce is employed.
E.W. Vetter’s opinion on HR planning is as a process by which an organization
should move from its current manpower position to its desired manpower
position. Through planning, management strives to have the right number and
right kind of people at the right places at the right time, doing, things which result
in both the organization and the individual receiving maximum long-run benefits.
There was a different opinion on HR planning by Leon C Megginson. He said that
it is an integrated approach to performing the planning aspects of the personnel
function in order to have a sufficient supply of adequate developed and motivated
people to perform the duties and tasks required to meet the organizational
objectives and satisfy the individual needs and goals of organizational members.
In plantations, the process of HR Planning is very essential. The initial step in
planning is forecasting; this process consists of two stages.
a) Workers demand forecast
b) Workers supply forecast.
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Employee planning deals with short and long term forecasting issues and is
designed to provide sufficient information about employee requirement in the
future, as illustrated below.
a) 1) Short term employee demand forecast - This is designed to assess the
level of worker requirements to enable the plantation to meet its objectives
during the forthcoming fiscal year. This type of forecasting has an
immediate effect on the plantations current situation.
Here, the management has to consider the expected harvest, other
agricultural operations and the required workers and allocations for all the
operations.
2) Long term employee demand forecast - This is to provide an optional
indication of the future of the plantation worker requirement based on one
to five year periods.
For these short and long term human resource demand forecasting two
kinds of techniques are commonly used:
i) Judgmental forecasts – This is the conventional method where management
forecasts using their intensive and extensive knowledge. It could be a
managerial estimate where managers and supervisors who are well-
acquainted with the workload, efficiency and ability of workers, think
about their future workload, future capabilities of workers and decide on
number and type of workers to be required.
Judgmental forecasting also could be done by using Delphi method. Here,
a large number of experts who present their forecasting statement
independently and underlying assumptions to the others, who then make
revisions to their forecast.
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ii) Statistical projection - For this technique, the following statistical methods
could be used:
Ratio trend analysis - Here, the past records and future forecasting ratios
are analysed. The components of the internal environment changes are
considered while forecasting future ratios. This method depends on the
availability of past records and the internal environmental changes likely
to occur in the future.
Econometric model - Under this model, previous data is analysed and the
relationship between different variables which effects the HR
requirements, in mathematical formula is developed.
Work study technique - In this method, the volume of the workload in the
coming year is analysed. Here the productivity pattern and internal
mobility is also taken in to consideration.
b) Employee supply forecast - Once the worker requirement for the forthcoming
fiscal period are summarized, management should proceed with identifying
appropriate sources of worker supply.
In order to keep a track of workers qualifications, capabilities and development, it
is necessary to introduce and maintain an updated employee record system.
The supply forecast includes:
i) Human resource audit - Here, workers skills, capabilities, are
identified and recorded. By analyzing the records management
could identify the future supply problems. The important aspect of
this is to keep the records regularly updated.
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ii) Employee wastage - this is to analyse the future loss of workers in
various operations. Workers may leave plantations for reasons like
retirement, layoffs, dismissals, disablement, ill health, marriage,
death or for new employments. Reason for high labour turnover
and absenteeism should also be analysed and remedial measures
must take.
iii) Internal promotions – It is very rare in the plantation sector. Very
few may be promoted as supervisors (Kanganies), or to the factory
operations.
If HR planning is done properly, there won’t be any operational workforce
shortages in the estates. Good planning is very essential in the smooth running of
the property and to achieve the given targets. If all the managers consider human
resource as the most valuable resource, then, every estate should have an excess
labour force.
Since there was an unemployment rate of 6.5% in Sri Lanka at end 2006, we
could effectively utilize those unemployed to fill the shortage of workers in
Estates. (Figure: 2.3)
When there is a short fall of workers in the estates, some efficient managers get
outside workers from nearby villages to fill the gap by offering them very
attractive packages, which includes free transport, lunch and tea. For example, on
an estate the normal wage of a female plucker is Rs 320 per day and for each kilo
in excess of the norm she gets Rs.10.35. During the cropping time, an average
good plucker can harvest about 40kg, where she gets 22kg as excess (40-18 norm
kg). For this excess, she gets an additional Rs.227.70 per day (Total income
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Rs.547.70 per day). Poor villagers in surrounding areas can greatly benefit by
such employment. For this, the estate has to bear a total cost of Rs.350 +
transport, where the estate lorry is used to transport about 20-30 people. This is
very useful and profitable during high crop times to maintain plucking rounds and
to gain better yields.
2.3.3 Motivation
Motivation is a Latin word, which means “to move”. Human motives are
internalized goals with individuals. Motivation may be defined as the forces that
cause people to behave in a certain way. It encompasses all the pressures and
influences that trigger, channel, and sustain human behavior. As in other
industries, managers must work with and through people, so they must gain at
least some understanding of the forces that will motivate the people that they are
to manage. To be a successful manager, it is necessary to understand the concept
of human motivation, and be able to use the understanding to achieve higher
standards of work performance.
Motivation is a very important factor in today’s industries. It’s human feeling that
enables them to perform and to feel better. It is a kind of encouragement.
Motivation function begins with the recognition that individuals are complex and
unique, hence the motivation techniques must reflect the needs of each individual.
It is an area of management in integrating people into work situations in a way
that motivates them to work together productively, co-operatively, and with
economic, psychological and social satisfaction.
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The following are the some of the definitions given by different people on
Motivation:
“The act of stimulating someone or oneself to get a desired course of
action.” (Michael J. Juicus)
“Motivation is the work a manager performs to inspire, encourage and
impel people to take required action.” (Lewis Allen)
“Is the complex of forces starting and keeping a person at work in an
organization. To put it generally, motivation starts and maintains actively
along a prescribe line. Motivation is something that moves the person to
action, and continues him in the course of action already initiated.”
(Dubin)
“Means a process of stimulating people to action to accomplish desired
goals.” (William G Scott)
“Motivation is the general term applying to the entire class of drives,
needs, wishes, and similar forces.” (Koontz and O’Donnell)
“Motivation is a general inspiration process which gets the members of the
team to pull their weight effectively, to give their loyalty to the group, to
carry out properly the tasks they have accepted and generally to play an
effective part in the job that the group has undertaken.” (Brech)
“Motivation refers to the way in which urges, drives, desires, aspirations,
striving or need direct, control or explain the behavior of human beings.”
(Dalton E. McFarland)
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“The term motivation has been called an intervening variable. Intervening
variables are internal and psychological processes which are not directly
observable and which, in turn, account for behavior.” (Tolman)
“Motivation refers to the degree of readiness of an organism to pursue
some designated goal, and implies the determination of the nature and
locus of the forces, including the degree of readiness.” (The Encyclopedia
of Management)
“It is a willingness to expend energy to achieve a goal or reward. It is a
force that activates dormant energies and sets in motion the action of
people. It is the function that kindles a burning passion for action among
the human beings of an organization.” ( C.B. Mamoria)
The following are the characteristics of Motivation:
* Motivation is an internal feeling
* Motivation is related to needs
* Motivation produces goal-directed behavior
* Motivation can be either positive or negative
By motivating the workforce, management creates “will to work” which is
necessary for the achievement of organizational goals.
There are two main types of motivation.
i) Positive Incentive Motivation - Where the motivation is generally based
on a reward, it increases the possibility of increased motive satisfaction.
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According to Flippo, “Positive motivation is a process of attempting to
influence others to do your will through the possibility of gain or reward.”
Incentive motivation is the “pull” mechanism. The receipt of awards, due
recognition and praise for work well done definitely lead to good team
spirit, co-operation and a feeling of happiness.
Positive motivation includes:
Praise and credit for work done
Wages and Salaries
Appreciation
A sincere interest in subordinates as individuals
Delegation of authority and responsibility
ii) Negative or Fear Motivation - This type of motivation is based on
force and fear. Fear causes persons to act in a certain way because they fear the
consequences. Negative motivation involves the possibility of deceased motive
satisfaction. It is a “push” mechanism.
The imposition of punishments frequently results in frustration among those
punished, leading to the development of maladaptive behavior. It also creates a
hostile state of mind and unfavourable attitude to the job. However, there is no
management which has not used the negative motivation at some time or the
other.
Theories of motivation:
a) Maslow’s need hierarchy theory or deficit theory of motivation
According to Abraham Maslow (US psychologist), who propounded the need
hierarchy, “There is a series of needs some of which are lower in the scale or
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system of values, in individual or social and some are higher. Higher needs cannot
be satisfied or even felt while the lower need remain unsatisfied. A satisfied need
is not a motivator.”
Following are the features of Maslow’s theory.
1) People have a wide range of needs which motivate them to strive for
fulfillment.
2) Human needs can be definitely categorized in to 5 types :
Physical needs
(hunger, thirst, relaxation, sex, etc.)
Safety or Security needs
(cover against danger, threat, deprivation, etc.)
Affiliation or Social needs
(belonging, giving, receiving affection, etc.)
Esteem needs
(Status etc.)
Self actualization needs
(creativity, self-expression, etc.)
3) These needs can be arranged into a hierarchy, Physical needs are at
the base where as Self actualization need are at the apex.
4) People gratify their physical need first, when the need is satisfied,
they feel the urge of the next higher level need.
5) Relative satisfaction of lower level need is necessary to activate the
next higher level need.
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6) A satisfied need does not motivate human behavior, it only triggers
or activates the urge for the next higher level of needs.
Deficit Principle
According to Maslow, once a need is fairly well satisfied, it is no longer
a stronger motivator of behavior. People are motivated to satisfy only
those needs that are perceived to be deficient.
Progression Principle
Maslow contends that the five categories of needs exist in a hierarchy. A
need at a given level is not activated until the need directly below it is
fairly well gratified. Thus, the person is expected to progress step-by-
step up the need hierarchy.
b) Hertzberg two factors theory of motivation
According to Hertzberg, there are two separate sets of conditions which are
responsible for motivation and dissatisfaction of workers. The motivational
factors or satisfiers are directly related to the job. Motivational factors are:
achievement, recognition, responsibility, the work itself, advancement etc. The
dissatisfies – maintenance and hygiene factors do not provide motivation.
Hertzberg found ten maintenance or hygiene factors, some of which are
interpersonal relations with peers, supervisors and subordinates, salary, company
policy, job security, status, work conditions etc.
Hygiene factors:
This represents the needs to avoid pain in the environment. They are not an
intrinsic part of a job, but they are related to the conditions under which a job is
performed. They are associated with negative feelings. They must be viewed as
preventive measures that remove sources of dissatisfaction from the environment.
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Hertzberg believed that hygiene factors created a zero level of motivation and if
maintained at a proper level, prevent negative type of motivation from occurring.
When the hygiene factors are absent, there will be an increased dissatisfaction
with the job. When present, help in preventing dissatisfaction but do not increase
satisfaction or motivation.
Motivators:
It is associated with positive feelings of employees about the job – they make
people satisfied with the job. Motivators are necessary to keep job satisfaction and
job performance high. On the other hand, if they are not present they do not prove
highly satisfying. Motivational factors or satisfiers are directly related to job
concern itself, the individual’s performance of it, its responsibilities and the
growth and recognition obtained from it. Motivators are intrinsic to the job.
To apply the two factor theory, Hertzberg, suggest a two-step process:
i) The supervisor should attempt to eliminate the hygiene factors that
are found to be more basic than factors that lead to satisfaction.
ii) Once the dissatisfies have been somewhat neutralized, the
supervisor may be able to motivate workers through the introduction
of motivational factors.
c) McGregor’s Theory X and Theory Y
Douglas McGregor propounded two contrasting kinds of management views
about the nature of human behavior. The hard approach he called “Theory X”,
and the soft or permissive approach as “Theory Y”. The following are
assumptions about human nature:
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Theory X
a) Management is responsible for organizing the elements of productive
enterprises – money, materials, equipment, people – in the interest of
economic ends.
b) With reference to people, it is a process of directing their efforts, motivating
them, controlling their actions, modifying their behavior in order to be in
conformity with the needs of the organization.
c) Without those active intervention by management, people would be passive
even resistant to organizational needs. Hence they must be persuaded,
rewarded, punished and properly directed.
d) The average human being has an inherent dislike of work and will avoid it if
he can.
e) He lacks ambition, dislikes responsibility and prefers to be led.
f) He is inherently self-centered, indifferent to organizational needs.
g) He is by nature resistant to change.
h) He is gullible, not bright.
Theory Y
1) Work is as natural as play or rest, provided the conditions are favourable, the
average human being does not inherently dislike work.
2) External controls and the threat of punishment are not the only means for
bringing about efforts towards organizational objectives. Humans can exercise
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self-control and self-direction in the service of objectives to which he is
committed.
3) Commitment to objectives is a result of the rewards associated with their
achievements. People select goals for themselves if they see the possibilities
of some kind of reward that may be material or even psychological.
4) The average human beings, under proper conditions do not shirk
responsibility, but learn not only to accept responsibility but also to seek it.
5) The capacity to exercise relatively high degree of imagination, ingenuity and
creativity in the solution of organizational problems is widely, not narrowly
distributed in the population.
6) Under conditions of modern industrial life the intellectual potentialities of
people are only partially utilized. As a matter of fact, men have unlimited
potential.
McGregor suggested the “Carrot and Stick” approach to motivate people in the
work place.
d) Victor Vroom’s Expectancy Theory
Expectancy Theory was developed by Victor H. Vrooms. It is based on the notion
that human behaviour depends on people’s expectations concerning their ability to
perform tasks and to receive desired rewards. The expectancy theory argues that
the strength of a tendency to act in a certain way depends in the strength of an
expectation that the act will be followed by a given outcome and on the
attractiveness of the outcome to the individual. It includes three variables which
Vroom refers to as:
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i) Valance: Valance means the strength of an individual’s preference for
a particular outcome. A valance of zero occurs when the individual is
indifferent towards the outcome. The valance is negative when the
individual prefers not attaining the outcome to attaining it.
ii) Instrumentality: Instrumentality refers to the relationship between
performance and rewards. It refers to a degree to which a first level
outcome (e.g. superior performances) will lead to a desired second
level outcome (e.g. promotion). If people perceive that their
performances is adequately rewarded the perceived instrumentality
will be positive. On the other hand, if they perceive that performance
does not make any difference to their rewards, the instrumentality will
be low.
iii) Expectancy: People have expectancies about the likelihood that an
action or effort on their part will lead to the intended performances.
Workers will be motivated by the belief that their performance will
ultimately lead to payoffs for them. Expectancy is the probability that
a particular action will lead to a particular first level outcome.
In sum, Vroom emphasizes the importance of individual perceptions and
assessments of organizational behaviour. The key to Expectancy Theory is the
“understanding of an individual’s goals”, and the linkage between “effort” and
“performance”, between “performance” and “rewards”, and between “rewards”
and “individual–goal satisfaction”. It is a contingency model, which recognizes
that there is no universal method of motivating people. Because we understand
what needs an employee seeks to satisfy does not ensure that the employee
himself perceives high job performance as necessarily leading to the satisfaction
of these needs.
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e) McClelland’s Need for Achievement Theory:
David C. McClelland, a Harvard Psychologist, has proposed that there are three
major relevant motives most needed in work-place situations. According to him,
the motives are:-
• The need for achievement i.e. strive to succeed.
• The need for affiliation i.e. warm relationship with others.
• The need for power i.e. control other people.
According to McClelland every motive is acquired except striving for pleasure
and avoiding pain. He proposed that people acquire these needs for achievement,
power and affiliation though experiences over the time.
On the job, people are motivated by these needs, and the manager can learn to
recognize these needs in workers and use them to motivate behaviour.
McClelland used the Thematic Apperception Test (TAT) to study human needs.
The TAT process involves asking respondents to look at pictures and write stories
about what they see in the pictures. The stories are then analysed to find certain
themes that represent various human needs. From his research McClelland found
that, achievement motive is a “desire to perform in terms of a standard of
excellence or to be successful in competitive situations”. They (employees) seek
situations where:
1. They can attain personal responsibility for finding solutions to problems.
2. They can receive immediate feedback information on how they are
progressive towards a goal.
3. They can set moderately challenging goals
4. They find accomplishing a task intrinsically satisfying.
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“High achievers” differentiate themselves from others by their desire to do things
better.
Evaluations
Achievement motivated people are the backbone of any organization. As such
considerable time and attention must be devoted to constructing ways of
developing the achievement motive at the managerial level. Organizational
climate must be conducive to high achievement. Estate Managers must try to raise
the achievement need level of subordinates by creating the proper work
environment, increasing responsibility and autonomy and rewarding excellence in
performance.
Requirements of a Sound Motivation System
It is very difficult for a Superintendent to sort through all the different
motivational theories and models and know when and how to maximize their
application in widely differing situations. There should be a sound system of
motivation to make the workers put forth their best efforts. A sound system of
motivation should have the following essential features.
1. A sound motivation system should satisfy the need and objectives of both
the Estate and workers.
2. Motivational system should change with the changes in the situation.
3. Work should be designed in such a way, to provide challenge and variety.
4. Superintendent should recruit and achieve co-operation of subordinates in
improving the organization’s output. Assistants should be made to realize
that they are stakeholders in the organization.
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5. The motivational system should satisfy the different needs of workers. It
should be directly related to the efforts of the employers.
6. The motivational system should be simple so that it is easily understood
by the workers.
Methods of Motivating People
Several factors influence human behaviour. There are numerous drives and needs
which can act as good motivators, moving people to work and getting things done
through them as per the plan. People respond to physiological needs, social needs
and egoistic needs. Human needs and desires are the door ways through which the
manager pushes his motivation efforts. There are three types of motivational
programmes to improve a person’s behaviour towards his job.
1. Pay intensive plans.
2. Job enrichment and
3. Management by objectives.
There are 4 important factors governing employee response to the measures of
motivations.
• The intensity of urge of the drive
• Past Experience – Can we rely upon the promises given by the
boss?
• Amount of reward – The quantity and quality of the reward can
influence the amount of extra effort put forth by the employee.
• Time relationship of Response to Reward – Long range promises
are less effective for immediate fulfilment.
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Moral
Moral is the degree of enthusiasm and willingness with which individual workers
of a group set out to perform the assigned work with zeal and sincerity, resulting
in good team-work. When there are many frustrations, disappointments,
discontent, grudges etc, it means that workers have low morale, whereas moral is
high when we have improved worker contribution, lower labour turnover, less
absenteeism, pride in work, less wastage and spoilage and specially no strikes and
sabotage.
It is the duty of the management to develop a high moral within the estate workers
in order to achieve organisational objectives.
2.3.4 Interview (Staffing)
Generally, in the tea plantations there are no formal procedures of interview for
new workers before offering them employment. The only criteria is to see that
they have reached the age of 17 years and have already left the schools. The other
important factor is to be a registered person in the estate. The registration is given
for all the permanent residents on the estate by birth or by parents been registered
as residents in the property. Under special circumstances like marriage to a
registered person, to look after elderly parents will get the registration.
Temporarily employment is given to children over 16 years, who are not
attending schools, for pensioners and sick and for the non-residents of the estate
on casual or cash basis under special considerations. This is only offered during
the high cropping time when there is a severe shortage of labourers on the estate.
Recruitment decisions are only taken by the superintendent of the respective
estate.
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The definition of recruitment is as follows:
“Recruitment forms the first stage in the process which continues with
selection and ceases with the placement of the candidates” (Kemper)
“Recruitment is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organization”
(Flippo)
“Recruitment is the discovering of potential applicants for actual or
anticipated organisational vacancies” (Mamoria)
“Recruitment is a process to discover the sources of manpower to meet the
recruitments of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective
selection of an efficient working force” (Yodar)
In the recruitment procedure, selection pays a key role. Even though in tea
estates, a selection procedure is not followed, as per my observations it is a vital
procedure.
In tea plantations, it is always beneficial at least to follow a few selection
procedures such as:
Interview
Here, I recommend to have group interviews with prospective candidates with the
Superintendent along with the assistant superintendent and the field office or the
head of the division, before starting the job. It is an opportunity for the
management to educate the worker about the estate, the work they have to
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perform, expected standards, norms, and to have a picture and understanding
about the workers caliber etc. Also for the workers to know the plantation’s
vision, mission and expectations. The candidates also could learn about the
working times, conditions, remunerations, incentives and other facilities. This
procedure could be also used as a familiarization operation. In modern context the
management could show a video presentation on estate operations and functions
and have a dialog on the above points. (I recommend each plantation have a
meeting place close to the office, for meetings, discussions, seminars, training
sessions, appreciations etc.)
Medical Examination
The estate superintendent could request the workers who are expecting to work to
obtain a medical certificate from the estate medical officer recommending them
medically fit to perform estate work, a comprehensive report about the physical
and mental condition of the recruit. It is a simple process as there is a resident
medical officer in most of the estates who provide his services free of charge. By
this the manager could assess the health conditions of the workers before they
start their jobs.
This is very important as there are many shortcomings, weaknesses and
disabilities among the estate workers. The main weaknesses are low hemoglobin
(anaemia) due to lack of proteins and minerals, and not getting proper treatment
for worms. As a result workers get weak and lethargic to work and are easily
prone to various sicknesses, out-turn will also be less, if it is a female, this will
badly affect their fertility, and children.
According to the World Health Organisation (WHO), it is found that 49.1%
pregnant women in the estate sector are anaemic.
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Due to living and social conditions, there are many workers who are suffering
from tuberculosis. This is a contingence, killer disease from which a worker could
even die. It is important to treat these types of sicknesses before they could spread
to the others too.
Due to bad eating habits and poor consumption of nutrients, most of the estate
workers lack vitamins, minerals and proteins – this will affect the resistance to
disease.
Malnutrition is also very common especially among children. Poor health
conditions are the main reason to have a high still-birth rate and low life span
among the workers.
I also noted many workers with poor eye sight. By using corrective devices it
could arrest this situation before many will go completely blind in the future.
Many workers have liver, kidney and heart diseases due to excessive use of
alcohol and smoking. Cancer situations are also prominent as many of them chew
betel leaves. I observed that many workers suffer from skin problems and
infections.
Implementing the medical examination procedures, we could check for most of
the sicknesses mentioned above and treat them accordingly before offering
employment. This will definitely help the managers to have a strong, healthier set
of workers on the estate.
Another factor I learnt by interviewing the managers and medical officers is that
there are many cases of venereal diseases amongst the estate population,
especially among the residents who goes out of the estate for jobs and foreign
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employment. This is mainly because of the poor knowledge and poor awareness
on such diseases and due to lack of education and negligence.
Other than the reasons and effects I mentioned above, the poor health conditions
and sicknesses have caused high absenteeism and poor output, loss of time and
income to the workers. This is a preventable loss to the estate in terms of time and
money and to the country’s economy.
It is also important to obtain medical certificates for quality certificate purpose as
most of the foreign buyers request for certain quality standards such as HACCP,
ISO 9001-2000, FLO, Justica Akimoto’s 5 S, CTQC etc. As tea is considered as a
food item it has to be certified as fit to be consumed before sales.
2.3.5 Communication
Communication pays a key role in every aspect in management. Good
communication skills will help the manager to persuade, inform, stimulate, direct
and convince his subordinates and workers. Especially in up-country estates it is
vital for a manager to have a very good understanding of the Tamil language both
oral and written, as it is the mother tongue of most of the up-country estate
workers (downward communication).
I observed in my study, that even some of the workers who are able to converse in
Sinhalese language prefer if the other person speaks in Tamil, and the attention
and respect is more for their own language.
Oral communication by itself is best when a manager:
• has to reprimand a worker
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• wants to communicate in confidence or “off the record”
• is settling a dispute between subordinates or workers
• is involved in minor violation of a policy in order to solve a
problem or get something done
• wants to communicate something but does not want to establish a
precedent
In estates, the work from OWF is mainly done using the oral communication.
Downward communication
In downward communication, it is the workers expectation that we need to be
sensitive to. Workers rarely understand just how limited the choice a Manager can
make. Typically they underestimate the narrow range of discretion defined by the
constraints and demands on the manager. This often results in unrealistic
expectations.
Realistic or not, subordinates have three types of expectations as to how a
manager will handle situations. First, they expect the manager to be the definitive
word on the formal policies and procedures governing their work and how these
impact on how they do their jobs. For example, if two workers differ over how the
work policy applies to their particular situations, they will turn to the manager for
the correct interpretation. Second, they expect the manager to be the guarantor of
justice in the work place. Third, workers expect their manager to represent their
interests in dealing with other groups and higher authorities.
Worker expectations are often behind much of the testing that every new
supervisor experiences. Often workers will feel uneasy until they know how a
new manager is going to handle certain situations. It is difficult to generalize
about how a new manager should respond to these tests except to say that a
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manager should expect them, understand that they are efforts at uncertainty
reduction not trickery, and be aware that the response to them may powerfully
shape future expectations of workers.
These expectations are particularly important since the most frequent of all
managerial communication is downward.
The most common message flowing in this direction are the following:
• job instructions
• rationale for tasks in relation to the estate’s goals
• estate policies and practices
• help and encouragement
• feed back about performance
When a manager gives an assignment to his workers, communication can be
improved if the manager does certain things, such as:
• use the language that the workers understand (e.g. Tamil language)
• being certain (with feedback) that the worker understand the logic and
requirements of the assignment
• being very direct about the ends that are expected
• scheduling a time for reporting back the results of the assignment
• trying, if possible, to ascertain whether the worker has the time and
resources to complete the assignment
• being open to means the worker uses to meet the expected ends
The most controversial point is the last one, but it is well-documented that
workers feel more motivated by assignments in which they themselves can
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determine the method. In general, it is helpful if the manager asks workers if they
have ideas about how to complete the assignment. Not only is this potentially
motivating, but many times workers come up with far better methods for
completing the assignment than the manager originally envisioned.
These are some of the more important nonverbal cues a manager might watch for
on communication with workers.
a) The physical space between the manager and worker
(Close conveys intimacy, distance conveys perceived status difference)
b) The orientation of body position
(Face-to-face conveys competition; side-to-side conveys cooperation)
c) The workers posture
(Stiffness conveys formality, looseness conveys relaxation)
d) Facial expressions
e) Gesture
f) Eye contact
For Superintendents, it is advisable, always to have an officer with him when
communicating with the workers, especially to females, as the culture on the
estates are different. It will always enable the manager to maintain his status, and
avoid unwanted problems due to misinterpretation of the language.
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Most of the managerial problems in estates are at some a level communication
problem. Effective managers solve these problems by being sensitive to the
particular demands of the direction of the communication. It is not just a matter of
being clearer. Giving assignments to workers demands a different approach from
asking peers for help. Similarly, keeping bosses informed requires an approach
much different from counseling a troubled worker.
2.3.6 Management by Objective (MBO)
MBO has been defined as “result centered, non specialist operational managerial
process for the effective utilization of material, physical and human resource of
the organization by integrating the individual with the environment.” The MBO
process consists of the following steps.
Setting of objectives
Classification of organizational goals
Setting up of subordinate objectives
Recycling of objectives
Performance appraisals
MBO is an extremely popular OD intervention. There is relation between MBO
and OD as OD aims at improving the organizational performance by introducing
changes in perceptions, values and structure.
2.3.7 Training and Development
Training is a process of learning a sequence of programmed behavior; it is also
called the application of knowledge.
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Training gives people an awareness of the rules and procedures to guide their
behaviour, and attempts to improve their performance on the current job or
prepare them for an intended job.
According to Edwin D. Flippo, “The purpose of training is to achieve a change in
the behaviour of those trained and to enable them to do their jobs better.” In order
to achieve this objective, any training programme should try to bring positive
changes in:
1. Knowledge – helps a trainee to know facts, policies, procedures
and rules pertaining to his job
2. Skills – helps him to increase his technical and manual efficiency
necessary to do the job
3. Attitude – moulds his behaviour towards his co-workers and
supervisors and creates a sense of responsibility in the trainee
The importance of training is:
a) enables the management to face the pressure of changing environment
b) usually results in the increase of quantity and quality of output
c) leads to job satisfaction and higher morale of the employees
d) reduces the need for supervision
e) helps to face the competition
f) enables employees to develop, rise and increase their earnings
g) moulds the employee’s attitudes and helps them to achieve better co-
operation with the organisation
h) makes better economic use of materials and equipment resulting in
reduction of wastage and spoilage
i) instructs the workers towards better job adjustment and reduces the rate of
labour turnover and absenteeism
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Training methods are classified as:
i) On the job training
ii) Off the job training
On the job training are as follows;
Coaching – This is the most common and widely used method of training in
plantations, here, the supervisor teaches the job knowledge and skills
to the workers at the workplace itself. In this training, trainees learn
in the actual environment and equipment on the job. It is relatively a
cheap method and less time consuming. This method increases the
effectiveness of training, and the trainee gets more familiarized with
the co-workers, working conditions and the supervisors.
Job rotation – This is periodical rotation from job to job so that the worker
acquires a general background of different jobs. In plantations we
can see men are put for weeding, plucking and manuring on rotation.
Special projects – Here, a worker is assigned to a project that is closely
related to the objectives of his job. As an example in tea plantations
we could see pruners are used for trimming and lopping of shade
trees on contract or special project basis.
Committee assignments – an ad-hoc committee is constituted and is
assigned a subject to discuss and make recommendations. This is not
used in tea plantations as a training method.
Off the job training methods are:
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Role playing – this technique is used for human relations and leadership
training. In plantations this method is used to train assistants to work
as trainee kangani. In some situations, a chance is given to a selected
youth to supervise a gang. On his performances we could consider
him to be a Kangani in the near future.
Other off the job training methods such as, case study, conference training,
management games, sensitivity training or T group training, special courses
etc. are not practiced in plantations.
2.3.8 Welfare activities
Tea plantations are considered as the sector with the highest welfare facilities for
its workers in Sri Lanka. In fact it is said that the tea plantation workers are cared
from “the womb to the tomb”.
The standard facilities enjoyed by the estate workers are as follows;
• free housing and maintenance and a garden
• free line (house) sweeper for the upkeep of houses
• free water
• free medical (by estate dispensary with a medical officer)
• free crèche and meals for preschool children up to 6 years
• free education, books and uniforms (government provided)
• free transport to hospital in a case of an emergency
• free cooking fuel (fire wood)
• maternity ward (by estate dispensary) with a midwife and staff
• maternity benefits (Figure 2.5)
• free provision of coffins and grave diggers
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• subsidies rate electricity for functions, where there is no power
• specially appointed welfare supervisor to attend all matters
• free tea (500grams for each worker per month)
In addition to the above, the tea estate worker enjoys 17 days holiday pay,
attendance bonus for more than 75% day’s attendance (Figure 2.5) and three full
paid holidays per year.
Plantation workers are also entitled for 15% as EPF/ETF (employer contribution)
on their basic salary plus on excess kilos and gratuity on retirement after 55 years
of age. Each registered worker is liable for gratuity when they have worked for
more than 5 years in the estate, even if the actual number of days worked is far
less.
2.3.9 Job satisfaction
Job satisfaction is very important in every employment. It directly affects
productivity, employee/employer relationship, absenteeism and turnover.
(Porter and Steers - 1973; Locke -1976)
JS is the way an employee feels about their job or work. It is a generalized
attitude towards the job, based on evaluation of different aspects of the job.
(Wexley & Yuki 1984)
The term job satisfaction refers to an individual’s general attitude towards his or
her job. A person with a high level of job satisfaction holds positive attitude
towards the job, while a person who is dissatisfied with his or her job holds
negative attitude about the job (Stephan 2001).
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There are three generally accepted dimensions of job satisfaction (Luthans 2002)
1. JS is an emotional response to a job situation.
2. JS is often determined by how well outcomes meet or exceed expectations.
For example, if organizational participants feel that they are working
much harder than others in the same organization, but are receiving fewer
rewards, they will probably have a negative attitude towards the work.
3. Job satisfaction represent several attitudes, they are:
a. Pay
b. Promotion opportunities
c. Working conditions
d. Co-worker relationship
e. Supervision
f. The work itself
The definition of Job satisfaction
“Job satisfaction is a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experience” (Luthans 2002)
i) Relationship between job satisfaction and other concepts A person’s attitude towards his job reflects pleasant and unpleasant experience in the job and expectations and about future experiences. However, with the many studies on job attitudes during past decades, it is not possible to specify precisely how JS is determined. Most of the researches has attempted to discover what things are related to JS, but the casual basis for relationship has usually been ignored (Lawler 1973). For an example, many studies were conducted to determine how satisfied workers are and to compare the JS of men versus women, old versus young, skilled versus unskilled workers, and so on. Other studies were conducted to determine what aspects of the job are perceived to be most important to workers (e.g. pay, supervision etc.) The reason some workers are more satisfied than others or the reason workers consider some job features to be more important than others were seldom considered. A comprehensive theory of job attitudes has not yet been developed to integrate the diverse findings of the satisfaction research (Lawler 1973).
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However, a few satisfaction theories of more limited scope have been proposed,
including:
a) Discrepancy theory
b) Equity theory
c) Social influence theory
d) Two-factor theory.
ii) Job Satisfaction and Labour Turnover
Labour turnover in short is the rate workers leave a work place and the
recruitment of new workers.
Labour turnover is defined as “voluntary cessation of membership in an
organization, and is one of several forms of organizational withdrawal such as
absenteeism and tardiness.” (Mitra, Jenkins & Gupta 1992).
Turnover decisions are functions of two factors.
a) Ease of movement, how easy is it to find a new job
b) Desirability of movement, whether workers experience enough
dissatisfaction to want a different job.
(March and Simon 1958)
Economist focus primarily on labour market determinants of the ease of
movements. Work place turnover (quit) rates are best predicted by general
economic activity. When the economy is healthy or unemployment is low and
jobs are plentiful, then the turnover rates will increase. (This theory is
unacceptable on foreign jobs) When the economic activity and job growth are
slow, turnover rates will generally decline. Economics have also found that most
but not all that leave do so for better pay/ income.
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iii) Components of Job Satisfaction
Working
Conditions
Promotional Opportunities
Pay Satisfaction
Co-Workers Relationship
Job Satisfaction
Labour Turnover
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iv) Model of Job Satisfaction Determinants
Source: Kenneth & Garry (1948) – Organizational Behavior and Personnel Psychology
Need, Values and Personality traits
Current social comparisons
Reference group influence.
Job factors in prior experience
Perception of conditions that should exist
Employee job satisfaction
Pay satisfaction
Worker itself
Advanced Opportunity
Co-Workers
Supervision
Job security
Perception of conditions that should
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2.3.10. Incentives/Rewards
Reward Management System. Worker reward system depends on the organization’s integrated policies,
processes and practices on its workers in accordance with their contribution, skill
and competence and their market worth. It is developed within the framework of
the organizations reward philosophy, strategies, policies and contains
arrangements in the form of processes, practices, structures and procedures which
will provide and maintain appropriate types and levels of pay, benefits and other
form of reward.
Components of a Reward System
A reward system consists of financial rewards (fixed and variable pay) and
employee benefits, which together comprise total remuneration. The system also
incorporates non-financial rewards (recognition, praise, achievement,
responsibility and personal growth) and memory, cases, performance management
processes.
A good reward system helps to improve the employee’s performance, to repeat
the performance that meets the expectation of the organisation and helps to create
more pleasant work environment.
The first key to finding effective rewards is having a large number of rewards
available. The following are the list of rewards that can be used for excellent
performance:
i) Recognition
• Praise
• Certificate of accomplishment
• Formal public recognition
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• Informal acknowledgement (pat on the back)
• Letters of appreciation
• Publicity (mention in the company letter)
• Award
• Being selected to represent department at meetings
ii) Job Tasks
• Assignment – new tasks
• Relieve from duties the employee does not like
• More frequent assignment of duties which employees like
• Assignment of partners, the employee like to work with
• Approval of job related request
• Opportunity for achieved training
iii) Job Responsibilities
• Opportunity for more self-management
• More authority to decide or implement
• Greater access to information
• Greater opportunities to set own priorities
iv) Tangible Rewards
• Cash bonuses
• Prizes
• Free lunch facilities in the company
• Company donations to charity in the employee name
• Paid trips to professional meetings
v) Status Indicators
• Large work area
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• Promotion
• Supervise more people
• Status symbol (name plate, better desk, carpet)
• Invitation high level meetings
• New title
vi) Personal Activities
• Flexible working hours
• Time off with or without pay
• Privileges (phone, reserved parking, travel)
• Engaging in creative activities (work an inventions or publication)
vii) Social Activities
• Going to company outings or parties
• Going to company organized recreation activities
• Opportunities to talk to boss
• Dinner/lunch/coffee with boss
viii) Relief from Disliked Policies
• Exempt from selected company control procedures
• Except from close supervision
ix) Relief from disliked work environment
• Better lighting
• Less noise
• Transfer from disliked co-worker or manager
• More closer to restroom, cafeteria or coffee facilities
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Elements of Reward Management
The following are elements of a good reward management system.
1. Base pay
Base pay or basic pay is the fixed salary or wage, which contributes the rate for
the job (Figure 2.5).
The basic levels of pay for job reflect both internal and external relativities.
Alternatively, levels of pay may be agreed through negotiations (collective
bargaining with trade unions) or by individual agreements. The base rate for a job
is sometimes regarded as the rate for a competent of skilled person in a job. This
rate may be in a skill based or competence based system according to the
individual’s skills or competence. In plantations pay is agreed through collective
bargaining with the trade unions.
Base pay may be expressed as an annual, weekly or hourly rate (time rate) and it
may be adjusted to reflect increases in the cost of living or market rates, or by
agreement with trade union.
In plantations the pay is expressed as a daily wage and in 2007, October it was
revised and the new pay system is valid till 31st March 2009 (Figure 2.5).
2. Additions to Base Pay
In addition to base pay further financial rewards may be provided on the basis of
performance, competence or experience.
Individual performance relating pay is in which increase to base pay are
determined by performance assessment and ratings.
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The important types of additional pay are:
a) Bonuses - are the reward for successful performance, which are paid as
related to the results obtained by individuals, teams or the organizations.
e.g. Profit bonus
b) Incentives – Placement linked to the achievements of previously set
targets, which are designed to motivate people to achieve higher levels of
performance.
e.g. Payment for over kilo plucking
c) Commission – Special form of incentive in which payments to sales
representatives are made on the basis of a percentage of the sales value
they generate.
e.g. Not practiced in estates
d) Skill based pay – This varies according to the level of competence
achieved by the individual.
e.g. For multi skilled workers who does specialized work after normal
work time - making trenches, road work etc.
e) Allowances – These are elements of pay that are provided as a separate
sum of money for such aspects of employment as overtime, shift working
etc.
e.g. Attendance allowance
f) Total Earnings – Total earnings are usually calculated as the sum of base
pay and additional payments. They contribute amount of money placed in
an employee’s pay pocket.
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g) Employee Benefit: are also known as indirect pay individuals pensions,
sick pay, insurance cover and company cases. They comprise elements of
remuneration given in addition to the various forms of cash pay and also
include provisions for employees which are not strictly remuneration, such
as annual holidays.
e.g. Workman’s compensation, Gratuity, Sick leave payment, holiday pay
Reward Strategy
Reward strategy defines the intentions of the organization on how its reward
policies and processes should be developed to meet plantations requirements. In
fact, the payroll costs can comprise 70% or more of the total costs incurred by an
organization explaining the need to adopt a strategic approach to reward which
ensures that added value is obtained from any investment pay.
Reward strategy should be developed as an integrated part of the total personal
strategy of the organization. The aim should be to ensure that it will support the
improvement of organizational performance in the fulfillment of overall goals of
the organization.
Development in the Reward Management Scene
From To
Defined jobs and standards Border generic roles emphasis and
continuous development expectance.
Inflexible job evaluation system, sizing
tasks, rewarding non-adoptive
behaviour and empire building and
encouraging point grading.
Flexible job evaluation process
assessing the value added by people in
their roles often within job familiars.
Hierarchical and rigid pay structures in
which the only way to get an increment
Broad bonded pay structure, where the
emphasis on flexibility carrier
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is by a promotion development pay and continuous
improvement.
Consolidation or reward into base pay More emphasis on rewardable or?
These movements include innovation such as competitive related pay, broad
banding and team pay which are the most forward looking of the current
development taking place in the context of increased devolution of pay decisions
to line management and more involvement of employee. They also reflect an
increasing strategic concern about getting value for many from the reward system
as evidenced by the increased interest in reward pay.
How to Deliver a Reward
Selecting the right reward is only the first half of the battle. The other half is
delivering a reward correctly. For example delivering a reward nine months after
the performance won’t have anywhere near the effect of giving the way following
the accomplishments. The following are the four principles for delivering rewards
effectively.
1) If Then Principle
2) ASAP Principle
3) Variety Principles
4) Sometimes Principles
The following steps help to deliver reward effectively
• Describe exactly what is a good performance
• Describe how your organization or a customer benefited
• Deliver the reward using the ‘if then,’ ASAP, variety and Sometimes
principles
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Reward Policy
Reward policy provides guideline for decision-making and action. It may include
statements of guiding principles or common purposes. Reward policy addresses
issues such as the followings:
• Competitive pay
• Internal equity
• Contingent pay
• Variable pay
• Individual and team reward
• Employee benefits
• Total reward mix
• Structure
• Reward priorities
• Differentials
• Flexibility
• Uniformity
• Devolution
• Control
• Gender Neutrality
• Partnership
• Involvement
• Transfer
Variable Pay: Incentives for Performance
Variable pay is compensation linked to individual, team, and/or organization
performance. Traditionally also known as incentives, variable pay plans are
attempts to provide tangible rewards to employees for performance beyond
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normal expectations. The foundation of variable pay rests on several basic
assumptions:
• Some jobs contribute more to organizational success than others.
• Some people perform better than others.
• Employees who perform better should receive more compensation.
• A portion of some employees’ total compensation should be given to
reward performance above expectations.
Variable pay plans can focus on individual performance, team or group
performance, and organization-wide performance. An important feature of
variable pay plans is that team-based incentives increase the degrees of co-
operation in teams, whereas individual incentives do not.
Individual incentives are given to reward the effort and performance or
individuals. Some of the most common means of doing this are piece-rate
systems, sales commissions, and bonuses.
When an entire work group or team is rewarded for its performance, more co-
operation among the members is required and is usually forthcoming. Among the
types of team incentives are gain sharing plans which reward employee teams that
meet certain goals.
Organization incentives reward people for the performance of the entire
organization. They may reduce individual and team competition. The most
prevalent forms of organization-wide incentives are profit-sharing plans and
employee stock ownership plans.
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As variable pay has grown in popularity, it has become evident that these plans
have both succeeded and failed. Reactions of employees are crucial to how
variable pay plans are accepted. There is evidence that most employees want
performance rewards included in their base pay, rather than as one-time
payments, and they prefer individual rewards over team or organization
incentives. A key to success in variable pay plans seems to be to combine
incentives with employee participation in the process.
Variable Pay Plans
Certain guidelines are useful in establishing and maintaining successful variable
pay systems:
• Recognize organizational culture and resources
• Make variable pay plans understandable
• Keep incentive plans current
• Tie variable pay to desired performance
• Recognize individual differences
• Identify variable pay separate from base pay
Reward and Performance Incentives
Good reward systems help to improve employee performance, to repeat the
performance that meets the expectation of the organization and helps to create a
more pleasant work environment.
The first key to finding effective reward is having a large number of rewards
available.
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2.3.11 Performance appraisals
After training and offering a job to an employee, at the end of a period of time his
performances are evaluated. PA is the mechanism to assess the contribution from
the worker towards the organisation during a specific period of time. It also
enables the worker to know as to how they have performed in comparison with
the set standards. This mechanism is followed in order to improve the workers
performances. PA helps the managers to identify the better worker from the poor
one.
PA is done by the immediate supervisor or a specially trained person meant for
the job. PA has direct links to the selection, training and mobility etc. Appraisal
and selection has a lot to do with the criteria or job expectation. Well developed
job descriptions can be extremely useful in not only selecting people but also
evaluating them on the same criteria.
Definitions of PA
According to Wendell French, Performance Appraisal is, “the formal, systematic
assessment of how well employees are performing their jobs in relation to
established standards, and the communication of that assessment to employees”.
According to Flippo, “Performance Appraisal is the systematic, periodic and an
impartial rating of an employee’s excellence in matters pertaining to his present
job and his potential for a better job”.
According to Dale Yoder, “Performance Appraisal includes all formal procedures
used to evaluate personalities and contributions and potentials of group members
in a working organization. It is a continuous process to secure information
necessary for making correct and objective decisions on employees.”
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According to Cummings and Schwab, “The objectives of performance appraisal
schemes can be categorized as either evaluative or developmental. The evaluative
purpose have a historical dimension and are concerned primarily with looking
back at how employees have actually performed over given time period,
compared with required standards of performance. The developmental, a future
oriented performance appraisal is concerned, for example, with the identification
of employees’ training and development needs and the setting of new targets.”
According to Heyel, “It is the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the job for which
he is employed for purposes of administration including placement, selection for
promotions, providing financial rewards and other actions which require
differential treatment among the members of a group as distinguished from
actions affecting all members equally.”
According to C.D. Fisher, L.F. Schoenfeldt and J.B. Shaw, “Performance
Appraisal is the process by which an employee’s contribution to the organization
during a specified period of time is assessed.”
From the above definitions we can conclude that performance appraisal is a
method of evaluating the behaviour of employees in the workplace, normally
including both the quantitative and qualitative aspects of job performance. It is a
systematic and objective way of evaluating both work-related behaviour and
potential of employees. It is a process that involves determining and
communicating to an employee how he is performing the job and ideally
establishing a plan of improvement. Performance appraisal emphasizes individual
development. Now it is used for evaluating the performance of all the human
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resources working at all levels of organization and of all types. It evaluates the
performance of technical, professional, and managerial staff.
Objectives of Performance Appraisal
Performance appraisal plans are designed to meet the needs of the organization
and the individual. It is increasingly viewed as central to good human resource
management. Performance appraisal could be taken either for evaluating the
performance of employees or for developing them. The evaluative purpose has a
historical dimension and is concerned primarily with looking back at how
employees have actually performed over given time period, compared with
required standards of performance. The developmental purpose is concerned with
the identification of employee’s training and development needs.
Appraisal of employees’ serves several useful purposes:
a) Feedback – It serves as a feedback to the employee. It tells him what he
can do to improve his present performance and go up the “organizational
ladder”. The appraisal thus facilitates self-development. It also makes the
employee aware of his key performance areas.
b) Compensation Decisions – It provides inputs to system of rewards. The
approach to compensation is at the heart of the idea that raises should be
given for merit rather than for seniority.
c) Data Base – It provides a valid database for personal decisions concerning
placements, pay, promotion, transfer etc. Appraisal also makes the
employee aware of his key performance areas. Permanent performance
appraisal records of employees help management to do planning without
relying upon personal knowledge of supervisors who may be shifted.
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d) Personal Development – Performance appraisal can help reveal the
causes of good and poor employee performance. Though discussions with
individual employees, a line manager can find out why they perform as
they do and what steps can be initiated to improve their performance.
e) Training and Development Programme – By identifying the strengths
and weaknesses of an employee it serves as a guide for formulating a
suitable training and development programme to improve his quality of
performance in his present work. It can also inform employees about their
progress and tell them what skills they need to develop to become eligible
for pay rises and/or promotions.
f) Promotion Decisions – Can serve as a useful basis for job change or
promotion. By establishing whether the worker can contribute still more in
a different or a higher job it helps in his suitable promotion and placement.
If relevant work aspects are measured properly, it helps in minimising
feelings of frustration of those who are not promoted.
g) Improve Supervision – The existence of a regular appraisal system tends
to make the supervisors more observant of their subordinates because they
know that they will be expected periodically to fill out rating forms and
would be called upon to justify their estimates. This improves supervision.
Performance appraisal helps to have comparative worth of workers. Appraising
workers performance is, thus, useful for compensation, placement and training
and development purposes. In the words of M.W. Cummings, “The overall
objective of performance appraisal is to improve the efficiency of enterprise by
attempting to mobilize the best possible efforts from individual employed in it.
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Such appraisals achieve four objectives including the salary reviews, the
development and training of individuals, planning job rotation and assistance
promotions.” The information can also be used for grievance handling and
keeping the record. It helps in improving the quality of supervision and better the
employee/employer relationship.
Uses of Performance Appraisal
Performance appraisal is a significant element of the information and control
system in organization. Performance appraisal is used in order to:
a) Provide valuable information for personnel decisions such as pay increases,
promotions, demotions, transfer and terminations. The information provided
forms the basis for suitable personnel policies.
b) Provide feedback on the level of achievement and behaviour of a subordinate,
rectifying performance deficiencies and to set new standards of work, if
necessary. It also identifies individuals with high potential who can be
groomed up for higher positions.
c) It serves as a means of telling a subordinate how he is doing and suggesting
necessary changes in his knowledge, behaviour and attitudes. It thus provides
information, which helps to counsel the subordinate. It also serves to stimulate
and guide employee’s development.
d) Analyze training and development needs. These needs can be assessed
because performance appraisals reveal people who require further training to
remove their weaknesses. By identifying the weaknesses of an employee, it
serves as a guide for formulating a suitable training and development
programme to improve his quality of performance in his present work.
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e) Serve as a means for evaluating the effectiveness of devices used for the
selection and classification of employees. It therefore helps to judge the
effectiveness of devices used for the selection and classification of employees.
It therefore helps to judge the effectiveness of recruitment, selection,
placement and orientation systems of the organization.
f) Facilitates human resource planning and career planning, permanent
performance appraisal records of employees help management to do human
resource planning without relying upon personal knowledge of supervisors.
g) Promotes a positive work environment, which contributes to productivity.
When achievements are recognized and rewarded on the basis of objective
performance measures, there is improvement in work environment.
Performance appraisal therefore, provide the rational foundation for
incentives, bonus etc. The estimates of the relative contributions of employees
help to determine the rewards and privileges rationally.
h) Make supervisors and executives more observant of their subordinates
because, they know that they will be expected periodically to fill out rating
forms and would be called upon to justify their estimates. This knowledge
results in improved supervision.
i) Records protect management from charges of favouritism and discrimination.
Employee grievance can also be reduced as it helps to develop confidence
among employees.
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Organisations use performance appraisals for three purposes:
(i) Administrative – Performance appraisal commonly serve as an
administrative tool by providing employers with a rationale for making
many personnel decisions, such as decisions relating to pay increases,
promotions, demotions, terminations and transfers.
(ii) Employee development – Performance appraisal for employee
development purposes provide feedback on an employee’s performance.
Appraisal data can also be used for employee development purposes in
helping to identify specific training needs of individuals.
(iii) Programme assessment – Programme assessment requires the collection
and storage of performance appraisal data for a number of uses. The records
can show how effective recruitment, selection and placement have been in
supplying a qualified workforce.
It is generally accepted that performance appraisals serve one or more of the
following purposes:
(a) To create and maintain a satisfactory level of
performance
(b) To meet an individual’s development needs
(c) To bring about better operational or business needs
(d) To facilitate fair and equitable compensation based
on performance
(e) To help the superiors to have a proper
understanding about their subordinates
(f) To provide information useful for manpower
planning by identifying employees with a potential
for advancement
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(g) To facilitate for testing and validating selection
tests, interview techniques through comparing their
scores with performance appraisal ranks
PA has to be done by the immediate supervisor; in estates, that is the field officer
who is in-charge of the division. It would also be done by the SD in-charge of the
division and reviewed by the worker himself.
The basic purpose of performance appraisal is to find out how well the worker is
doing the job and establish a plan for improvement. The content to be appraised
may be in the form of contribution to organizational objectives like production,
savings in terms of cost, return on capital etc. The content to be appraised may
vary with the purpose of appraisal and type and level of workers.
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Process of Performance Appraisal
Performance appraisal is planned, developed and implemented through a series of
steps
JOB ANALYSIS
JOB DESCRIPTION AND JOB SPECIFICATION
ESTABLISHING STANDARDS OF PERFORMANCE
COMMUNICATING PERFORMANCE STANDARDS TO
EMPLOYEES
MEASURING ACTUAL PERFORMANCE
COMPARING ACTUAL PERFORMANCE WITH STANDARDS AND
DISCUSS WITH EMPLOYEES
INITIATING CORRECTIVE ACTION, IF NECESSARY
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A sound appraisal system should comply with the following:
1. Reliability and validity
2. Job relatedness
3. Standardisation
4. Practical viability
5. Training to Appraisers
6. Open communication
7. Employee access to results
8. Clear Objectives
9. Post Appraisal Interview
10. Periodic Review
11. Not Vindictive in Nature
2.3.12 Trade Unions
Especially in Tea Plantations, Worker unions play a major role in day-to-day
activities. These unions are responsible for most of the problems and unrest on the
estates. High political involvements are the main reason behind these situations.
During the past years, there were many union backed strikes on plantations.
(Figure 2.9)
These are the main worker unions in Laxapana estate (Figure: 2.10)
CWC - Ceylon Workers Congress
UCWF - Up Country Workers Front
NUW - National Union of Workers
LJEWU - Lanka Jathika Estate Workers Union
CPWU - Ceylon Plantation Workers Union
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WLF - Workers Liberation Front
UPW - Unite Plantation Workers
Even though there are collective agreements with the unions they do not honour
these agreements purely due to political advantages.
e.g. From the wage agreement in November 2006, there was a wage increment for
all plantation workers and it was valid till 31st December 2008. Due to political
pressure and the Hon. President’s involvement, that was changed and the wages
were increases again in October 2007, and the new agreement is supposed to be
valid till 31st March 2009. Even though there was resistance from the Plantation
companies, they had no choice as the orders were from the top. This was a classic
example of the negative political involvements in Plantations.
Most of these unions are considered as partial toward the workers, and encourage
workers to go on strike and go-slows even for small problems. If it is for the
benefit of the plantation industry, unions have to be neutral or impartial, and
should look at the problems in a more reasonable manner, and should always take
steps to settle matters amicably, thinking about the industry.
It is a fact that most of the plantation trade unions take advantage of illiterate
workers and put them in trouble by instigating the problems, causing the workers
loss of wages (revenue), for companies millions in turnover, and huge economical
losses for the country.
There were 19 union led strikes with 196,520 workers involved in the year 2006,
causing over 4.821mn man days loss to the plantation sector and to the country,
whereas the total loss of man days due to all strikes in Sri Lanka during the same
period was 4.899mn. This clearly shows how strong the plantation union in Sri
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Lanka is and the damage and impact cause by them to the entire economy of the
country. (Figure 2.9)
2.3.13 Industrial Relations
The concept of IR means the relationship between the workers and the
management.
Some of the definitions for IR are as follows:
“IR is called the plant community life” (Peter Drucker)
“IR is the relationship that exists and grows out of employment” (Dalye Yadev)
“IR is a group of animated capital, it deals with either relationship between the
states and employers and workers organisations or the relationship between the
organisation themselves” (Robert Oven)
The relationship between employer and employee is that of power group
relationship. IR is an integral aspect of social relation arising out of employer
employee interaction in modern industries which are regulated by the state to
varying degrees in conjunction with organized social fares and influenced by the
existing institutions.
Significance of IR
a) Good IR helps in economic policy of a nation.
b) Good IR helps in establishing and monitoring industrial democracy.
c) Helps in formulating labour policies of the government.
d) Helps in encouraging collective bargaining.
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e) Good IR results in industrial discipline bargaining.
f) Strengthens Trade Unions.
g) IR helps government in making law for unfair labour practices.
h) It helps in maintaining industrial react and avoidance of industrial strike.
IR is important due to the following reasons
1. IR establishes a sound cordial, harmonious labour management relation.
2. To protect and improve labour management relation by developing mutual
understanding and level of confidence.
3. To develop harmonious relation in order to reduce industrial conflicts like
strike lockouts etc.
4. To minimize labour turnover and absenteeism among workers.
5. To encourage workers to enhance productivity to higher level.
6. To uplift the economic status or workers by improving wages, allowance,
fringe benefits etc.
7. To establish and nurture industrial democracy by providing a say to the
workers in decision-making.
8. To encourage and strengthen trade unions.
9. To encourage collective bargaining.
Factors of IR
a) Institutional Factors
These include government policy, labour legislation, voluntary courts, employer
federations, social institutions, cast etc.
b) Economic factors
These factors include economic organization, structure of labour force, demand
and supply for labour force etc.
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c) Technical factors
These factors include mechanization, automation, computerization etc.
The three major participants of IR are the workers and their organizations,
management and government.
1. Workers and their Organization
Workers play an important role in IR. Workers organizations known as trade
unions play a prominent role in regulating IR. The main purpose of trade unions is
to protect workers economic interest through collective bargaining and by
bringing pressure on management through economic and political tactics.
2. Employers and their Organization
The employer is a crucial factor in IR. He pays wages, allowances, regulates the
working conditions through various rules and regulations. He expects a maximum
contribution from his employees. The difference between the demands of the
employer and employee results in a conflict. The bargaining power of the
employer is undermined. When compared to the trade unions the employers from
their organization to equate or excel their bargaining power with that of trade
unions.
3. Government
The government acts as a mediator and custodian. The government tries to
regulate the activities and behaviour of both employees and employers.
The following are the principles to be followed to maintain sound IR:
a) The dignity of the individual and his freedom of right and equality to be
recognized.
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b) The employers and workers should have mutual trust, respect, goodwill
and acceptance in exercising their duties and rights.
Scope of IR
The scope of IR includes:
a) Relationship among employees and their superiors and managers.
b) Collective relations between unions and management.
c) Collective relations among trade unions, employers associations and
government.
Functions of IR
Functions of IR include:
a) Establishment of communication between the workers and management in
order to bridge the traditional gap between the two.
b) To develop a rapport between the management and employees.
c) To ensure creative contribution of trade unions to avoid industrial
conflicts, to safeguard the interest of workers on the one hand and the
management on the other hand.
d) To promote understanding, co-operation, creativity and participation.
e) To raise the industrial productivity.
ILO
i) Good labour management depends on employers and trade unions
capacity to deal with their mutual problems freely, independently, and
responsibility.
ii) The trade unions and the employers and their organizations should be
interested in resolving the problems through collective bargaining.
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iii) Workers and employer’s organization’s should be desirous of associating
with government agencies taking in to considerations the general, social
public and economic measures affecting employers and workers relations.
Conditions for Congenial IR
It is very difficult to promote and maintain sound industrial relations. Certain
conditions should exist for the maintenance of harmonious industrial relations.
They are:
Existence of Strong Well-Organized Democratic Unions
IR will be sound only when the bargaining powers are equal. A strong trade union
can protect the employer’s interest.
Existence of Sound Organized Employer Unions
These associations are helpful for the promotion and maintenance of uniform
personnel policies among various organizations and to protect the interest of
weaker employers.
Spirit of Collective Bargaining and Willingness to resort to Voluntary
Negotiations
The differences between employers and employee should be settled through
mutual negotiation and consultation. This will help in maintaining congenial
relations. Moreover issues not settled through the process of collective bargaining
should be referred to voluntary arbitration.
Maintenance of Industrial Peace could be achieved through:
i) Setting up of machineries both legislative and non-legislative to resolve
the dispute
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ii) Government should be provided tripartite committees in order to evolve
personnel policies, code of conduct etc.
iii) Provision for the various committees to implement and evaluate the
collective bargaining agreements, court orders and judgment awards etc.
Approaches to IR
a) Psychological approach
This approach is based on the differences in the perceptions of management,
unions and workers. The differences arise due to differences in personalities
and attitudes.
b) Sociological approach
Is based on individual differences. An organisation is made up of
individuals and groups with differing personalities, educational back
ground, emotion etc. These differences results in conflicts.
c) Human relations approach
This implies that relationship between employer and employee as between
to human beings.
d) Gandhian approach
This principle is based on the principles of truth, non-violence and non-
possession. Mahathma Gandhi envisaged that the employers are two equal
partners in the manufacturing process of the industry.
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2.4 Problem analysis
2.4.1 Quit
Quitting is a serious problem faced by today’s management. This has created
major issued in industries. Especially where training and development involved.
Quitting results high worker turnover and is directly responsible for heavy
financial losses and affects the smooth operations in the industry.
The main reason for quitting a job is dissatisfaction. According to “Price and
Muller” (1981), it was concluded empirically that job dissatisfaction and an
indirect effect on turnover through its direct effect on formation of intent to leave.
Quitting can be due to following reasons:
• Job dissatisfaction
• Family/personal reasons (child birth, sick parents, spouses dislike etc.)
• Due to physical difficulties/sicknesses
• Change of residencies (mainly due to marriage)
• To go for another employment (foreign job, garment job etc.)
• Due to retirement age
Despite a low monthly salary of Rs.10,000-15,000, the number of female workers
leaving for foreign employment during the last few years has increased
tremendously. In 2006, over 100,000 women left Sri Lanka to work as
housemaids mainly to Middle Eastern countries. Out of the total employment
migrants, the housemaids accounted for 50%. According to the Foreign
Employment Bureau, up to end 2007, there were over 460,000 Sri Lankan women
working as house maids (Figure 2.8)
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Series of Decisions Involved to quit.
(Source: Intermediate linkages in the relationship between job satisfaction and employees turnover, Journal of Applied Psychology Vol. GL 1977)
A Evaluation of existing job
F Search for alternatives
B Expected job satisfaction/dissatisfaction
C Thinking of quitting
D Evaluation of cost of quitting
E Intention to search for alternatives
G Evaluation of alternative
H Comparison of alternative with present job
I Intent to quit/stay
J Quit/Stay
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2.4.2 Poor Turnover
This mainly refers to not attending to work or the absenteeism from work. Here
the worker still remains as a registered employee. This situation mainly affects the
planning process as these workers are expected to be at work but have not taken
part in their stipulated job. This creates a shortage in OWF. It is common in
plantations that after the muster (where the work is disbursed in the morning)
when a worker feels that the job he got for the day is difficult, he refrains from
attending to that job. For these instances the field office or the person who offer
the job, should motivate and encourage the worker to perform that task efficiently
and effectively.
To overcome this situation, the manager could encourage outside workers to work
in the estate by offering permanent residencies and assuring more work and more
income. In a plantation, more work means more number of days work offer. By
law, an estate should offer a minimum of 24 days work to the female pluckers and
22 days to men workers. At Laxapana Estate, as an average a female works for 26
days and men for 24 days, during the high cropping seasons pluckers work for all
30 days. On Sundays, Poya days and other Mercantile holidays workers are paid
1.5 times the daily wage, therefore from the management’s view it is better to
avoid such days in order to keep the costs low. Instead working on such days,
management could employ casuals and other outside workers to harvest the
excess crop.
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2.4.3 Lack of Motivation
Motivation is the secret behind getting work done effectively. It is up to the
supervisors to use their skills to motivate the workers to perform their work
efficiently. Motivation, creates a liking to perform a job and there the worker
enjoys his work, and as a result performances will improve.
Lack of motivation or no motivation is a grave problem in most of the plantation
operations. Therefore it is a prime requirement to teach the supervisors, methods
to motivate the workers as well as to encourage the executives to implement
motivation tactics in plantation operations. This will help the productivity,
improve PR with workers and result in smooth and efficient operations in the
estate. Motivation methods have been explained in detail under in Chapter 2.2.3.
2.4.4 Union involvements
Unions are the cause for most of the Plantation related problems. It is the
responsibility of the Superintendent to have and maintain a good relationship with
the union representatives. The most important aspect in handling unions are to
give them the due respect and to listen to their requirements. If the request is
reasonable it is always better to entertain and fulfill the request for the benefit of
the workers. A good relationship with the union representatives will always help
the mangers to settle their problem within the estate without taking them outside.
A good superintendent uses various tactics to keep the unions under his control.
You could discourage the members joining a bad union showing your support to
another union. It is always better to remember that the plantation unions are
highly politicised. Even though they show that they are for workers most of the
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union leaders are selfish and look for various gains. It is also a fact that some
union leaders demand for light work or wages without work to be less
troublesome in the estates they work.
Some unions influence religious activities and in community matters specially to
gain political mileage. Most of the times these influences end up in clashes and
tense situations where the management has to get involved to settle the disputes.
This affects the harmony and smooth operations in the estates. There is a
considerable amount collected as union fees (Rs. 65) monthly from the members
of each union. (Figure 2.9)
2.4.5 Training and Development.
Even though training and development is vital in operations, it is a challenge in
plantations due to the:
• Poor education standards
• Not accustomed to participation in training
• Time and other constrains
• Training programmers fail to attract the worker
If an off the job training program is conducted in a simple and more professional
ways it will attract the participants. It is always better to use modern methods
such as projected presentations, visuals and practical examples than using
handouts and write ups. The training program must be conducted in their mother
tongue so that all understand the program. By offering refreshments, course
materials and a certificate to confirm the participation it will encourage the
participation among the workers. Training program should be conducted in a
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convenient location in the estate itself and must get the staff officers and
executives participation.
It is better to have a common program for all the works like awareness program or
on a common subject, on a day like the pay day that all the workers get together in
a common place. This training has to be mainly on volunteer basis without
pressurising the workers to participate in order to avoid administration issues.
2.5 Methodology
The best method to get the OWF attracted to estate work is by motivating them to
perform their work efficiently and effectively. It is the duty of the management to
assess the performances and reward them accordingly for their achievements.
Better welfare facilities, training and development, good communication skills,
incentives and rewards, etc. are the factors that influence workers to be in the
estates and to contribute in the estate operations. Those factors are also an
attraction for the new comers to join the workforce.
However, if the operations are planned and organized properly and well in
advance there may not be any major problems with regards to the shortage of
workers for estate operations.
Tea plantation operations are seasonal in nature and most of the operations are
repetitive. Therefore it is easy to pre-plan the operations. The planning will be
much easier if the weather patterns and other factors which influence the
plantation operations are followed and studied properly. Most of the problems that
occur during the operations could be arrested using common sense and basic
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agricultural practices. In planting, decision making has to be very quick and
tactical, especially in sensitive issues related to the workers. According to the
senior planters, planting is 75% HRM and only 25% agriculture. Therefore in tea
plantation the most difficult and important operation is to manage the OWF.
2.6 Analysis
Here, we shall analyse the most important operations in an estate with the
available workforce.
Total Availability of Workers at Laxapana Estate (Figure 2.11)
With casual workers - Men - 544 Women - 692 ---------- Total 1,236 ======
Available workers as an average per day
@ 80% out turn - 989 Men - 435
Women - 554 Available workers per month @ 25 days work - 24,726
Men 10,875 Women 13,850
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Women worker requirement
Plucking: Total area for plucking = 397.3ha (Figure 2.17)
VP tea (226.4ha) average 5 rounds per month (Figure 2.16) @20 LPH = 22,640 SD tea (170.9ha) average 4 rounds per month
@ 15 LPH = 10,254
Total Women required for plucking/month = 32,894
Shortage of women for plucking for a month = 19,044 (32,894 – 13,850)
Men worker requirement
Assumptions:
Manuring - 4 applications for a year 397.3ha x 4 = 1,589ha
Therefore monthly applications = 132.4ha Worker requirement @ 6 LPH = 794 Weeding - Total plantation: 526.70ha
3 manual weedings/year @ 15 LPH = 23,701 Monthly worker requirement = 1,975 3 chemical weedings/year @ 4 LPH = 6,320 Monthly worker requirement = 527 Folio (manure) spraying for tea extent = 397.3ha 4 rounds of spraying/year @ 3 LPH = 4,768 Monthly worker requirement = 397 Pruning - 1/3 of the plantation is pruned annually Therefore per year pruning extent = 132.4ha Worker requirement/year @ 55 LPH = 7,284 Monthly worker requirement = 607
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Factory operations @ 50 workers/day x 25 days work = 1,250 Other men requirements are such as welfare, Kanganies, bungalows, transportation etc. Per day average 40 workers x 25 days = 1,000 Total men workers available for a month = 6,550 Excess of men workers per month at Laxapana Estate
(10,875 – 6,550) = 4,325
Total Worker deficit per month at Laxapana Estate
(Women shortage 19,044 - Men excess 4,325) : 14,719
(Figures: 2.11, 2.12, 2.16, 2.17)
2.7 Conclusion
Today, there is a scarcity of labourers in every industry where it requires more
skilled and unskilled workers. In today’s world more people expect white collar
jobs, even though there is a huge requirement for blue collar jobs especially in
plantations with more attractive benefits.
A remedy for this issue is to provide maximum welfare facilities to uplift the
living standards of the workers. This will be a retention method to stop the
outflow of workers from the estates. This will also attract the new people from
other areas to join the estate cadre.
By introducing incentive packages and rewards we could motivate workers to
improve efficiency for higher output. New management systems will enable them
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to perform at a low LPH rate, especially for plucking operations where the highest
workforce is needed (refer Motivation 2.3.3).
In conclusion, if human resources are planned and managed properly, and used
effectively and efficiently by introducing and implementing above methods, the
managers could solve the OWF shortage and most of the human related problems
on the estates.
2.8 Recommendations
2.8.1 Improve more on Welfare facilities.
Even though there are many welfare facilities provided by the estate, it is vital to
provide as many extra facilities to retain people in the estates and to build a better
bond with the management.
In plantations, it is the Superintendent who is there for everything for the estate
people. A good superintendent is given the status of a “God” in the estates.
Therefore it is the right and the duty of every estate Superintendent to look after
his estate people in a more humane and sympathetic manner, and to get the
maximum output while treating them well. This will be a win-win situation for
both parties.
There are many ways and means that a superintendent could attend to the welfare
activities in an estate for the benefit of his workers without spending much funds.
A few such activities are as follows:
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For the welfare of the children
Children are the future of plantations; if the estate looks after them well, my belief
is that in future they too will contribute to the estate in some way. The estate
crèche has to be a clean and attractive, important place in the estate. The
superintendent has to give the best support to keep the place clean and tidy and to
attend the other requirements like good toilet facilities and water. The crèche
attendant has to be a competent person, with experience to handle the little
children. There has to be a good assistant to help her, or to release her for an
emergency. There are many NGO’s and religious groups which are willing to help
the children. With them, estates could upgrade the pre-schools, give them better
facilities, education materials, foods and nutrients and health facilities such as
immunization vaccinations, various aids for differently able children, etc.
Welfare of the Youth
Each estate could promote sports and leisure activities to the youth. With the
patronage of the estate manager, the estate could form a sports/youth club.
Though the club, we could encourage the young workers to engage in sports
activities after the work. Generally, in an estate, men finish their work by 2.00pm.
Thereafter people can engage in sports like volleyball, football, cricket, elle etc. or
indoor activities like carrom, checkers, playing cards, etc. These activities will
keep the workers active and happy, physically and mentally.
Superintendents could organize classes on computer, electronics, tailoring,
masonry, carpentry, or any other useful subject; or have a library to develop their
reading habits and knowledge; have a TV to watch educational programs and
news etc.
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Through the youth club we could develop, workers talents e.g. art, drama,
dancing, singing, etc. By this, we could identify the hidden talents of the estate
workers and encourage them to develop their talents. With the Club, the estate
could organize an annual sports meet, talent show and appreciate and evaluate the
workers talents.
It is always better to have an annual event with the estate sponsorship for the
workers. It will enhance the bond and better relationship between the management
and the workers, as well as workers themselves. This will enable the workers to
be in the estate after work and to spend their free time in some productive work,
rather than wasting their valuable time on non productive ways. By organizing
these kinds of activities, we could promote good values among the workers. When
the workers are occupied, they will have no time for gossiping and to organizing
bad activities like strikes in the estates etc. This is a better way to eradicate drugs,
alcoholism and smoking habits amongst workers.
Welfare of the Adults
Adult workers are more concerned about their children and their daily household
chores. Most adults spend their free time in their gardens. We could help them by
educating or by helping the workers to find finances to rear cattle, chicken or
other useful animals, and also to promote their own cultivations, especially
vegetables. This will help them to have nutritious meals and to earn some extra
income. Children will be able to have fresh milk, eggs, and vegetables.
Another possibility is to operate an estate welfare or a co-operative shop to
provide provisions to the workers at a reasonable price, in most instances workers
have to pay extra, travel to towns to get their provisions.
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If the superintendent could take an interest to introduce the above welfare
activities in their estates, we could be sure of having a better, much healthier new
generation, working in the future plantation sector to face new challenges.
On the estate level, we could think of a micro-financing system for the workers.
For this the superintendent could form a committee with the workers, supervisors,
and union leaders at estate level or with the help of a bank. They should have a
constitution and regularize the methods of disbursement of funds and the
recoveries. The manager has to overlook the operations and advise them as and
when the committee needs; the accounts have to be transparent and the committee
should have regular meetings at least once a month. This is not only to lend
money but to promote the habit of savings among the workers.
Lending has to be strictly on the recommendation of the committee and on two
guarantors (estate resident workers) signatures. It is better to keep the maximum
lending amount to about 6 months pay, recoverable within a maximum of two
years, and should be given for specific requirements such as, agriculture and
animal husbandry development, housing, to purchase household equipments and
furniture, to buy bicycles and for children’s education, etc.
Some plantations have started a plantation bank called “Wanisa” Estate housing
development Bank, where the operations are similar to what I have mentioned
above.
Welfare of the Elderly pensioners
They are the people who worked hard to bring the estate to this condition, and the
main contributors to the national economy. Therefore it is the duty and
responsibility of the Superintendent to look in to their welfare and needs and
wants. Many workers give up estate work to look after the elderly. Managers
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could start up a caretaking place for the elderly, preferably in connection with the
estate dispensary. The children could go to work leaving the elders with the care
taker and in the evening take them back home.
For this purpose too, the estate could get the help of the NGOs and religious
parties. It is necessary to provide the meals and medicines they require.
Workers Health
It is the responsibility of the estate manager to maintain the estate dispensary, and
the health related work of an estate. Most estates have a medical officer and a
couple of assistants to look in to the health aspect of the workers. At Laxapana
there is an EMA, mid wife, welfare supervisor and two labourers to assist them.
The Manager has to make sure that, all the required drugs are available and
equipments are in good order. It is also the responsibility of the Manager to check
the work of the medical staff by going through the medical book.
The estate manager could organize free medical camps with societies and clubs
like Lions club. These should include specialist treatments and distribution of
drugs. For this they could avail the services of a few medical consultants. Special
check-ups (e.g. diabetes), distribution of drugs and vitamins, checking of eye
sight and dental treatment etc. are some services that can be organized. This is a
very useful and needy service much appreciated by the workers and it comes with
no cost to the estate. I have personal experience in organizing such events for the
estates. It is better to have a free health camp at least once in two years.
It is vital to keep the estate Ambulance in good condition and be ready to move at
any emergency. The ambulance at Laxapana is in a good condition with basic
facilities, and is used to transport patients who need emergency treatment. The
closest base hospital is in Maskeliya, a town about 10 km from the estate.
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Community places
There are many places of worship on the estates. Laxapana Estate has 5 Hindu
Kovils and 2 Churches. The estate community is generally God fearing and
respects their religions, therefore it is the duty of the Superintendent to assist and
encourage them in all the religious activities. The attendance of the
Superintendent in the religious activities on the estate is appreciated by the
workers very much. The manager should show his interest and respect to those
activities.
By developing and participating in religious activities and getting the participation
for religious affairs by all of the estate workers, Managers could build a better
relationship with the workers and improve unity and harmony among workers.
Spiritual development keeps the worker away from bad habits and bad behavior.
Other public areas such as the workers community center used for training and
development, the Estate salon, crèche, co-operative, muster shed etc. must be
maintained well and kept in good condition.
Today, most of the international buyers look in to the welfare of the estate
workers of the plantations where they purchase tea from. Some of the buyers pay
visits to the estates to verify for themselves the condition of the community
centres and the treatment of workers. Therefore it is paramount to pay more
attention in developing welfare facilities and to the estate workers.
2.8.2 Training and development
Training is another area where we could improve for the benefit of the
plantations. By effective T&D, we could improve the efficiency and effectiveness
105
of the workers. In plantations, I have noticed that the worker participation in
achieving organizational objectives are very poor, in fact, workers have no
knowledge about the companies objectives, mission and vision and the targets to
be achieved. They are not aware about what they get from the companies and
what the companies expect from them.
Since the present generation is more educated and knowledgeable, it is an easier
task than in the past. It is also recommended that the Superintendent take part in
these training programmes as his presence will encourage the workers to
participate and feel that T&D is very important in operations.
Training for workers could start from the orientation phase. A competent person,
preferably a senior executive or an expert on the subject should conduct the
program in their mother tongue. By having an orientation programme we could
build confidence in the organisation, and ensure that the new worker may not
form false impressions regarding their work place, promote a feeling of belonging
and loyalty, and to know about the facilities that they could enjoy, remuneration,
incentives, motivators, rules and regulations and other details like work times, tea
and meals breaks, weighing times etc, and all what they want and need to learn
about the plantation as a whole.
The next step is the job training, this is very important as the workers career and
future depends on the way that this training is conducted. It is always better to use
a competent person from the community, with the guidance of a good staff
member and a senior executive.
This training could be useful to the new workers as well as the others. Training
programmes could be conducted on the operations of the estate such as, plucking,
manuring, weeding, spraying, pruning, planting, manufacture etc.
106
Plucking - we could teach the importance of proper harvesting on time, with
minimum handling of leaves, leaving buds and very young leaves for the next
pluck and to harvest the best quality leaves and the maximum quantity. The
quantity of harvest will definitely affect worker income. A quality harvest will
enhance characteristics of high grade quality teas and will be in demand. It is also
vital to teach them the proper ways of storing, transporting and handling the tea
leaves. On the practice of the estates, it could give training on new methods and
use of equipments such as shears, machines etc. for plucking. As plucking is the
main income generator in an estate, it has to be done in the most effective and
efficient manner.
Manuring - Most of the manurers are not aware about the use of the fertilizer and
the effect it has on the plantations. This training is vital as the manuring operation
is the most important and expensive operation in plantations.
The manurers should be taught the importance of manuring, the chemical
components and its effects, effective application methods, application quantities,
transportation and storage, safety and precautionary methods. Proper application
of fertiliser is the reason behind good harvest and higher yields. Effective
manuring results in a healthy plantation, which is resistant to diseases, infections
and pests.
Weeding – This is also a common operation in plantations. Weeders must be
educated on the kinds of weeds, how to eradicate them, the effect of weeds on the
plantation, ways to remove the weeds, stacking, transporting and using weeds for
mulching and composting purpose. If the chemicals are used, the correct variety
of weedicides for each growth, the correct quantities of chemicals for effective
results, how the various chemicals affect different kinds of weeds, the intervals to
use chemicals, chemical storage, mixing, transportation, filling into tanks,
107
spraying methods, use of correct sprayers and nozzles, maintenance of the
spraying tanks and the negative effect of sprayers etc. It is very important to teach
the workers about safety and precautionary steps to follow when handling
chemicals.
Pruning - For this operation, workers skill is important. By training we have to
teach the pruners pruning methods, techniques, height and the cut, use and
maintenance of tools (knives) and after care operations and methods. It is
important to teach them about taking the remains out of the site leaving all the
leaves on the field etc. For this training we could get the help of a senior worker
or a kangani who is experienced on these operations.
Planting - This is considered as capital work in the plantations. The main
operations involve, preparing the site, draining, marking contours, making holes,
application of manure, selecting of good plants, transporting, planning, thatching,
pegging, planting of shade trees etc. All of these operations have to be carefully
done since a minor error could affect the future tea bushes. It is better to get a
senior executive, field officer, and kanganies specialised in different operations to
train the workers. It is important to teach the workers on technical aspects such as
the varieties of clones used for planting, depth of the holes, removal of unwanted
materials from the planting site etc.
Manufacturing - This is the most important operation where machinery is used.
Most of the workers are not aware how the tea comes to their cup of tea and how
to make a good cup of tea.
Manufacturing training starts at the factory from the time tea leaves arrive. The
transporting staff must be trained that leaf transport from the fields should be
108
done with great care to minimize the crushing and damage of leaves, stacking the
correct weight in bags and to the vehicles and transporting.
Next, training is on the green tea leaves brought to the factory. The process
commences by weighing and spreading the leaves in the troughs for withering,
which, after a few hours (it takes the moisture out) the withered leaves are sent
through the rollers. What comes out from machines is called dhool and it is sent
for fermenting. Fermented dhool is sent for firing where the chemical reactions in
tea leaf stops. What comes out of the driers is called black tea which is what we
drink.
In this training we have to teach the staff and the workers the different functions
of the machinery, its operations and maintenance. It is better to teach them on the
chemical reactions and the process, transformation of green tea leaves to black
tea. In manufacturing, timing is considered as a crucial factor as incorrect timing
spoils the quality. The training must also cover methods of power and fuel saving
and techniques for cost reduction.
The manufacturing process is done under the careful supervision of many staff
members and the factory officer. All the functions of the factory are managed by
the factory manager who is also a senior executive on the estate.
2.8.3 Mechanisation of Operations
This is a practical method of finding a permanent solution for the worker shortage
problem in plantations. Like in other countries it is recommended to use
mechanical plucking where ever possible, especially in flat areas.
109
There is an option for automating and mechanising most of the factory operations.
Starting from leaf collection, a conveyor belt system can transport the leaves to
the troughs. This method solves the problem of leaf getting damaged by human
handling. The same can be applied on rollers and other machines. We could also
computerize the machine for automated operations. At present one person is
employed to each machine operation. Under a computerized factory, a few
operators may handle many functions.
In plantation operations such as weeding, manuring, spraying, pruning etc. we
could make the maximum use of machines and power tools. This will enhance the
productivity and efficiency of the workers whilst reducing the worker
requirement.
For new plantations we could introduce drip irrigation/sprinkler systems enabling
the plants to grow healthy and strong. We could use the same system for
manuring and other applications. With this the management could tryout high
yielding tea clones which are susceptible to drought and deceases. If these
methods prove successful the production and yields could be increased
dramatically.
2.8.4 Outside workers for estate work
With the high un-employment rate in Sri Lanka, it will not be a difficult task to
get outside workers to fill the shortage of estate workers. As explained earlier we
could attract more village people and unemployed in the area to work in the
estates by offering them attractive benefits. With the increased wages and
provision of transport, housing and other benefits it will be much easier to get
outside workers. I have observed that the benefits and the facilities enjoyed by the
110
estate workers are very much greater than what the poor people enjoy in their
villages. There are many such villages and colonies around the Laxapana area
where we could obtain workers to the estate by using village headmen and other
politically influential people.
111
(D) Chapter 03
i) Appendix
ii) List of References
iii) Bibliography
iv) List of Abbreviations
112
i) Appendix 1
Tea
Figure 1.1 Volume and Value of Tea Exports Sri Lanka (up to 2006)
Figure 1.2 Production and prices of SRI LANKA major crops (up to 2006)
113
Appendix 2
Worker related
Figure 2.1 Sri Lanka population, labour force, unemployment etc. (up to
2006)
114
Figure 2.2 Sri Lanka labour force and employment etc. (up to 2006)
Figure 2.3 Sri Lanka labour force and unemployment etc. (up to 2006)
115
Figure 2.4 Average daily labour wages in Sri Lanka (up to 2006)
Note: In October 2007, plantation workers wages were revised, accordingly tea
plantation worker’s average daily wages as follows:
Figure 2.5 Worker’s wage calculation (2007 Collective Agreement)
Per day Male Female
Basic Salary 200.00 200.00 EPF 15% 30.00 30.00 PSS (Price Share Supplement) 20.00 20.00 Attendance incentive 70.00 70.00 Over kilo with EPF 15% 10.35 Total Per day Rs.320.00 Rs.330.35 Average monthly wage (24 days work)
Total Rs. 7,680.00 Rs. 7,928.40
Additional payments (Annual) Sick leave payment (Per day) 110.00 Maternity payment
1st and 2nd Child 18,000.00 3rd and above 9,000.00
Attendance Bonus Full , above 85% attendance 850.00 Half, above 75% attendance 750.00
116
Figure 2.6 Sector-wise employment in Sri Lanka (up to 2006)
Figure 2.7 Wage indices Sri Lanka (up to 2006 taking 1978 Dec. = 100)
Employment by Economic Activity
117
Figure 2.8 Departures for foreign employment Sri Lanka (up to 2006)
Figure 2.9 Strikes in private sector industries Sri Lanka (up to 2006)
Foreign Employment
118
Division CWC UCWF NUW LJEW CPWU UNW WLF N/U * Tot
Lax 88 28 79 4 11 210
Val 155 21 13 54 38 70 351
Sal 4 123 2 30 159
Sau 60 18 42 4 14 138
Ham 57 41 11 18 127
Total 364 108 215 54 42 4 55 143 985 * N/U means non union members
Figure 2.10 Union strength at Laxapana Estate as at 31st December 2007
DIVISION Permanent
staff casual staff
Total Labour Force
Dec-2007 Dec-2007 Dec-2007
M F TOT M F TOT M F TOT
Laxapana 97 120 217 04 27 31 101 147 248
Valamalay 148 192 340 22 43 65 170 235 405
Lower 60 82 142 41 38 79 101 120 221
Upper 58 75 133 11 11 58 86 144
Hamilton 51 61 112 63 43 106 114 104 218
Total 414 530 944 130 162 292 544 692 1236
Figure 2.11 Laxapana Estate workforce as at 31st December 2007
119
DIVISION Total Labour
Force Cultivated Workers
Dec-2007 Extent per
M F TOT Ha Ha
Laxapana 101 147 248 118.15 2.10
Valamalay 170 235 405 139.25 2.91
Lower 101 120 221 114.00 1.94
Upper 58 86 144 91.40 1.58
Hamilton 114 104 218 63.90 3.41
Total 544 692 1236 526.70 2.35
44% 56%
Figure 2.12 Laxapana Estate Extent and Workers per hectare December
2007
Laxapana Estate Population as at December 2007
DIVISION Children Unemployed
and Others others Total
below 14 years Eligible for employment Workers Dependants Population
M F TOT M F TOT M F TOT M F TOT M F TOT
Laxapana 199 172 371 3 4 7 101 147 248 158 143 301 461 466 927
Valamalay 251 265 516 6 11 17 170 235 405 196 163 359 623 674 1297
Lower 111 148 259 2 4 6 101 120 221 160 134 294 374 406 780
Upper 106 132 238 2 3 5 58 86 144 125 109 234 291 330 621
Hamilton 109 115 224 3 4 7 114 104 218 136 127 263 362 350 712
Total 776 832 1608 16 26 42 544 692 1236 775 676 1451 2111 2226 4337
Figure 2.13 Laxapana Estate Population as at December 2007
120
DIVISION Union
Strength
CWC : Ceylon Workers Congress
CWC UCWF NUW LJEW CPWU UPW WLF N/U TOT UCWF : Upcountry Workers Front
Laxapana 88 28 79 0 0 0 4 11 210 NUW : National Union of Workers
Valamalay 155 21 13 54 0 0 38 70 351 LJEWU : Lanka Jathika Estate Workers Union
Lower 4 0 123 0 0 0 2 30 159 CPWU : Ceylon Plantations Workers Union
Upper 60 18 0 0 42 4 0 14 138 UPW : United Plantation Workers
Hamilton 57 41 0 0 0 0 11 18 127 WLF : Workers Liberation Front
Total 364 108 215 54 42 4 55 143 985 N/U : Non Union Members
Figure 2.14 Laxapana Union Strength/Percentage as at Dec. 2007
Last 10 Years
Year Yield NSA COP 1997/1998 2044 131.71 75.19
1998/1999 1800 121.64 86.69
1999/2000 1794 120.62 87.80
2000/2001 1586 144.60 103.49
2001/2002 1561 151.43 116.85
2002/2003 1750 165.87 123.95
2003/2004 1479 163.03 142.63
2004/2005 1575 201.54 162.96
2005/2006 1795 238.77 152.05
2006/2007 1813 271.32 172.96
Figure 2.15 Laxapana Estate Yield, NSA, COP for last 10 Years
Percentage 37% 11% 21.8% 5.5% 4.2% .4% 5.6% 14.5%
121
Avgerage Labour Utilizations (Per hectare) Plucking - VP Fields 20 Labour Plucking - SD Fields 15 Labour Chemical Weeding - VP 3 Labour Chemical Weeding - SD 3 Labour Manual Weeding - VP 7 Labour Manual Weeding - SD 5 Labour Spraying 2.5 Labour Pruning - VP 55 Labour Pruning - SD 45 Labour
Figure 2.16 : Laxapana Estate Estimated Labour Utilisation 2007
122
Figure 2.17 Laxapana Estate, Total Extent details in hectares 2007
Reconciliation of Extents (Hectares) for Year 2007 LAXAPANA ESTATE
Budget Previous Variance Total
Year '07 Year '06 at the end 2007
In Bearing
VP 226.40 226.40 0.00 226.40
Seedling 170.90 179.10 -8.20 170.90
Extent in Bearing 397.30 405.50 -8.20 397.30
IMMATURE
Replanting
Infested 4.70 4.70 0.00 4.70
1st Year Upkeep 1.00 -1.00 0.00
2nd Year Upkeep 1.00 1.00 1.00
Planting Year 3.00 3.00 3.00
Rehabilitation 10.25 10.25 0.00 10.25
Sub Total 18.95 15.95 3.00 18.95
Infilling
Uprooting 4.00 -4.00 0.00
Planting 0.50 -0.50 0.00
Rehabilitation 6.50 2.00 4.50 6.50
Sub Total 6.50 6.50 0.00 6.50
Nurseries 0.90 0.90 0.00 0.90
Sub Total 0.90 0.90 0.00 0.90
VP Inter-cropped coffee 3.00 3.00 0.00 3.00
SubTotal 3.00 3.00 0.00 3.00
Total in Tea 426.65 431.85 -5.20 426.65
Other Cultivated
Thatch Bank 12.00 14.00 -2.00 12.00
Sub Total 12.00 14.00 -2.00 12.00
Fuelwood Timber Extents
Above 7 years 20.25 20.25 0.00 20.25
Below 7 years 34.85 34.85 0.00 34.85
Coppice 6.25 6.25 0.00 6.25
Diversified into fuelwood 15.70 12.70 3.00 15.70
Calliendra Planting [ Pure Stand ] 7.00 5.00 2.00 7.00
Sub Total 84.05 79.05 5.00 84.05
Conservation of forests 4.00 4.00 0.00 4.00
Sub Total 4.00 4.00 0.00 4.00
Total Cultivated 526.70 528.90 -2.20 526.70
Buildings / Worker housing 1.00 1.00 0.00 1.00
Roads 32.95 32.95 0.00 32.95
Line Gardens 4.00 4.00 0.00 4.00
Abandoned 13.30 11.10 2.20 13.30
Land suitable for planting 159.10 159.10 0.00 159.10
Sub Total 210.35 208.15 2.20 210.35
Grand Total 737.05 737.05 0.00 737.05
123
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Dalton, D.R., Krackhardt, D.M. & Porter, L.W. (1981). Functional turnover: An
empirical assessment. Journal of Applied Psychology, 66, 716-721. Edwin D Flippo - Training and development , Purpose of training and
behaviour. Fredrick Taylor, Henry Gantt, Frank and Lilian Gilbreth -Scientific management
Garyhamel, C K Prahlad (1994) - Strategic intent -Human resource development
and TQM
GeiSri Lankaer , Wendall French, Leon C Megginson - HR Planning and
concepts.
Henrey Mintzberg - Managing of performance
Henry Fayol, Louis A Allen, Theohaimann, Koontz O’Donnel - Planning
Hulin, C.L. (1968). Effects of changing in job satisfaction levels on employee
turnover. Journal of Applied Psychology, 52, 122-126. Koontz - Management by objective (MBO)
March, J.G. & Simon, H.A. (1958). Organizations. New York: Wiley. Mary Parker - Management processors
McEvoy, G.M. & Cascio, W.F. (1985). Strategies for reducing employee
turnover. A meta-analysis. Journal of Applied Psychology, 70, 342-353.
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Mitra, A., Jenkins, D., Jr., & Gupta, N. (1992). A meta-analytic review of the relationship between absence and turnover. Journal of Applied Psychology, 77, 879-889.
Mobley, W.H. (1982). Employee turnover. Causes, consequences, and control.
Reading, MA: Addison-WeSri Lankaey. Mowday, R.T., Porter, L.W. & Steers, R.M. (1982). Employee organization
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132
iv) List of Abbreviations
BOP - Broken Orange Pekoe
BOPF - Broken Orange Pekoe Fannings
COP - Cost of Production
CTQC - Ceylon Tea Quality Certificate
EMO - Estate medical officer
FLO - Fair Trade Labelling Organisation
Ha - Hectares (equals to 2.472 acres)
HACCP - Hazard Analysis and Critical Control Point.
HR - Human Resources
HRD - Human Resource Development
HRM - Human Resource Management
ICBT - International College of Business and Technology
ILO - International labour Organisation
IR - Industrial relations
ISO - International Standards Organisation
ITC - International Tea Committee
JEDB - Janatha Estate development board
JS - Job satisfaction
Kg - Kilograms (equal to 2.205 lbs)
Km - Kilometers
Lbs - Pounds (British) (equals to 0.454kg)
LPH - Labours (workers) per hectare
133
MBO - Management by Objective
Mn - Million
NSA - Net Sales Average
OD - Organisational Development
OWF - Operational workforce
PA - Performance appraisal
PM - Personnel Management
SHRD - Strategic Human resource development
SRI LANKA - Sri Lanka
SRI LANKATB - Sri Lanka Tea Board
SPC - State Plantation corporation
T&D - Training and Development
TP - Tea plantation(s)
TQM - Total Quality management
TRI - Tea Research Institute
VP - Vegetative propagated