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

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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)

22

(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

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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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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