MBA-P&O-Final.pdf

Master of Business Administration

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MBA 7000

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People & Organisations 2

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International College of Business and Technology ii


Human Resource Aspects in Crisis Situation of ABC Beverages Sri Lanka Limited

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People & Organizations

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MBA 7000

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Table of Content Table of Content.............................................. ............................................................................. iv Table of Figures............................................................................................................................ vi Executive Summary ..................................................................................... ............................... vii Abbreviations ................................................................... .......................................................... viii 1.

Introduction............................................. .............................................................................. 1

1.1

The ABC Company .......................................................................................................... 1

1.1.1 1.2

ABC Beverages Sri Lanka Limited ................................................. ................................. 2

1.2.1 2.

4.

Company Structure ................................................................................................... 2

The Crisis ................................................. .............................................................................. 3

2.1 3.

Company Structure ................................................................................................... 1

Flood impact at the ABC Beverage Sri Lanka Ltd and “Biyagama” Area ...................... 3

Impact to People and Organization................................................................................ ..... 4

3.1

Impact to the Production .................................................................................................. 4

3.2

Current Position of the Organization ............................................................................... 5

3.3

Impact to the People ......................................................................................................... 5

3.4

Challenges and Issues....................................................................................................... 5

Proposed Solution and Approaches .................................................................... ................ 6

4.1

Immediate Actions ........................................................................................................... 7

4.1.1

Supporting to the Staff .............................................................................................. 7

4.1.2

Commence Company Operations ............................................................................. 8

4.1.3

Maintaining Staff Motivation and Satisfaction ......................................................... 9

4.1.4

Documentation of Recovery Process ................................................ ...................... 10

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4.2

4.2.1

Incentives and Additional Payments ................................................. ...................... 11

4.2.2

Maintain Current Market Share .............................................................................. 13

4.2.3

Team Spirit.............................................................................................................. 13

4.2.4

Management Trust .................................................................................................. 13

4.3

Long Term Solutions ...................................................................................................... 14

4.3.1

Implementation of Disaster Recovery Plan ............................................................ 14

4.3.2

Increase the Production with same Staff Capacity .................. ............................... 14

4.3.3

Factory Relocation .................................................. ................................................ 17

4.3.4

Work and Life Balance ........................................................................................... 17

4.4 5.

Medium Term Actions ................................................... ................................................ 11

More Recommendations ................................................................................................ 18

Conclusion ........................................................................................................................... 18

References ............................................... ..................................................................................... 20

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Table of Figures Figure 1.1 - The ABC Company Structure ..................................................................................... 1 Figure 1.2 – Company Structure of the ABC Beverages Sri Lanka Limited ................................. 2 Figure 4.1 - Maslow’s Pyramid of Human Needs .......................................................................... 8 Figure 4.2 - Herzberg’s Two Factor Theory.................................................. ............................... 10 Figure 4.3 - The Reward Management System of Elements and Interrelationships .................... 12 Figure 4.4 - Porter and Lawler Model .......................................................................................... 15 Figure 4.5 – Model for Employee Engagement to Effectiveness ................................................. 16 Figure 4.6 - Adam’s Equity Theory.............................................................................................. 17

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Executive Summary ABC Company is the number one nonalcoholic beverage company and world’s most recognizable brand. The company have top five soft drinks and licensed to market more than 500 nonalcoholic beverage brands. The ABC Company reaches thirsty consumers in more than 200 countries and manages geographically seven main operating segments. ABC Beverages Sri Lanka Limited is one of the leading manufacturers of soft drinks in Sri Lanka and their office is located at Biyagama in the Western Province. They have recorded product sales over 10 million physical soft drink bottle cases per annum. Due to the low pressure over Bay of Bengal heavy rain fell across Sri Lanka. More than 200 mm of rain causing floods and landslides which affected the lives of half a million people in Sri Lanka. The major landslide was in Aranayake, Kegalle District, which devastated three villages. Water levels on the “Kelani River”, which had reached a peak of 8 feet and remained in this th

manner for 3 days. On 25 May, the Government of Sri Lanka estimated that a total of 128,000 houses and 25,000 to 30,000 businesses could have been impacted by the disaster. The company faced this major crisis after many years of operation. This issue impacted 650 staff members, including casual employees due to the non-availability of their jobs. All three production lines were badly affected. Also the raw materials and machines have been damaged. There was no office environment for the staff members. Estimated total loss is around Rs 850Mn for office equipment/furniture, computers, printers, scanners, documents and other items. Unsafe environment within the factory and inadequate infrastructure facilities created demotivation of staff and unsatisfactory working condition. There was a very bad impact to the businesses and back office functions, no office infrastructure to commence business. The top management made constant dialog with the Regional Office in India, America and Germany for their assistance and summarize the action plan with three main categories such as an immediate action, medium term action and long term solutions. At this point of time the management recommended solutions to overcome crisis situations in a future aspect as well.

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Abbreviations CEO

-

Chief Executive Officer

CEA

-

Central Environment Authority

BCP

-

Business Continuity Plan

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1. Introduction 1.1

The ABC Company

ABC company is the number one nonalcoholic beverage company and world’s most recognizable brand. The company have top five soft drinks and licensed to market nonalcoholic beverage brands with variety of still beverages such as enhanced water, juice drinks, coffees, ready-to-drink teas, energy drinks, and sports drinks with the world's largest beverage distribution system. The ABC Company reaches it is thirsty consumers in more than 200 countries and the company manages geographically-based, seven main operating segments, including Eurasia and Africa, Latin America, Europe, Asia Pacific, North America, Bottling Investments and Corporates. In addition, they have expanded the beverage business in Sri Lanka. Due to limitations of the company, name will be used as ABC Company.

1.1.1

Company Structure

The ABC Company structure with the geographical separation is depicted in figure 1.1. Figure 1.1 - The ABC Company Structure

Source: Juliegilhuly, 2014

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1.2

ABC Beverages Sri Lanka Limited

ABC Beverages Sri Lanka Limited is one of the leading manufacturers of soft drinks in Sri Lanka and their office is located at Biyagama in the Western Province. The company is manufacturing soft drinks to the Sri Lankan market. Manufacturing via three production lines and the factory is functioning 24 hours on shift basis. Over 650 staff members are employed at ABC Beverages Sri Lanka Limited including outsourced staff. They have recorded product sales over 10 million physical soft drink bottle cases per annum. The company holds more than 50% market share in the soft beverages industry.

1.2.1

Company Structure

ABC Beverages Sri Lanka Limited is headed by the Managing Director/CEO comprising of the senior management. The company is subdivided into smaller departments/units. Figure 1.2 depicts the broad level structure of the ABC Beverages Sri Lanka Limited. Figure 1.2 – Company Structure of the ABC Beverages Sri Lanka Limited

Source: The Author International College of Business and Technology 2


2. The Crisis th

“On 15 May 2016 Sri Lanka was hit by a severe tropical storm that caused widespread flooding and landslides in 22 districts out of 25 districts destroying homes and submerged entire villages” (ReliefWeb, 2016) Due to the low pressure over Bay of Bengal heavy rain fell across Sri Lanka. More than 200 mm of rain causing floods and landslides which affected half a million people in the country. The major landslide was in Aranayake, Kegalle District, which devastated three villages. Water levels on the “Kelani River”, which had reached a peak of 8 feet and remained in this manner for 3 days. The impact of this natural catastrophe of the floods and landslides was that 623 houses have been completely destroyed and 4,414 homes have been damaged. However, given that many affected locations remained underwater and it was dangerous to access due to the possibility of further landslides, it is likely that this number will rise once further assessments have been completed. On 25 May, the Government of Sri Lanka estimated that a total of 128,000 houses could have been impacted by the disaster, with 30,000 in need of reconstruction or rehabilitation. According to Government estimates, 25,000 to 30,000 businesses may have been impacted by the disaster. There is also need for early recovery and alongside the provision of emergency food support, livelihoods activities to support the most vulnerable people who have lost all their personal and productive assets.

2.1

Flood impact at the ABC Beverage Sri Lanka Ltd and “Biyagama” Area

Biyagama area generally gets flooded. The worst flood experienced in was in 1988 (28 years ago). This time the flood level reached higher than before and water stagnated for more than five th

days. On the 16 night water came into the warehouse. The management team decided to stop th

the deliveries of beverages and focus was diverted to store goods at higher levels. On 16 May 2016 at 3.00 pm, the company stopped all three production lines and the night shift. Electricity was also disconnected to the power plant and electrical motors.



In the evening, the management experienced the water level was coming up rapidly. The management stationed only few people like an electrician, mechanic and security personnel. It was witnessed in the night that the water levels were rising again and was coming to the main th

plant and offices. On the 17 morning water level increased up to three feet. No road access to the factory was possible. Some of the plastic bottles were floating in water all over the th

warehouse. On 18 May 2016 the water level was going further up and this time up to seven feet and the management decided to evacuate all people including security personnel from the nd

premises. On 22 May 2016 the water level reduced and security personnel and some important officers were deployed.

3. Impact to People and Organization The company faced this major crisis after many years of operations. This issue impacted 650 staff members, including casual employees due to the non-availability of their jobs. All three production lines were badly affected and raw materials and machines have been damaged. There was no office environment for the staff members. Estimated total loss is around Rs. 850Mn for office equipment/furniture, computers, printers, scanners, documents and other items.

3.1

Impact to the Production

The company is not in a position to start any production under the current conditions. Main input for beverage production is water. Due to the flood condition, consumers may think about the quality of the production. Repairs/service to production lines is required and infrastructure to be in order to re-commence operations.



3.2

Current Position of the Organization

Unsafe environment within the factory and inadequate infrastructure facilities created demotivation of staff and unsatisfactory working condition. There was a bad impact to the businesses and back office functions, no office infrastructure to commence business. The management is discussing recovery processes for speedy recover y.

3.3

Impact to the People

The impact can be categorized as direct impact and indirect impact to the people. Without production process employees cannot perform duties to earn wages as previously. No overtime payments and incentives for the staff. The employees’ needs were the main focus of the management. Garbage was all over the place and inside the factory was also badly affected. Difficulty to perform cleaning activities with bad smell and weather conditions. All staff members were worried about their job security and income sources. Severe flooding affect and stagnant water was a breeding ground for waterborne bacteria and mosquitos. Whilst trying to manage disaster management operations at the factory and office, the welfare of the staff was also done simultaneously as it is considered that the most important ingredient in the success of any business is to ensure that staff is being cared for, especially during times of trouble.

3.4

Challenges and Issues

After the crisis the company had to face many challenges and issues to overcome this situation. This required handling problems/challenges very positively. The management has analyzed internal and external environment of the company and identified the following challenges: i. ii.

Complaints from the factory associates regarding their facilities and working conditions. Grievances and complaints of the factory staff and sales staff because of loss of income, such as production incentive, sales incentive and overtime payments are no more.

iii.

Distributors being deprived of income for next few months due to loss of business. International College of Business and Technology 5


iv.

Required to obtain the license from the Government authority for disposing of solid waste such as furniture, products, etc.

v.

Need to obtain a Central Environment Authority (CEA) approval to destroy over 1Mn plastic bottles and it is necessary to store contaminated products (above mentioned bottles) in a third party warehouse until we obtain the CEA approval.

vi.

Unable to cater to the market for next few months, some of the key account holders such as McDonalds, KFC, Pizza Hut, Keels, Arpico, etc. were desperately looking for our products.

vii.

The insurance company is still assessing the claim and it will take few months.

viii.

How to motivate factory staff, sales staff and distribution channels?

ix.

There are few pregnant staff members of the company. How to manage those staff members without impacting the health conditions?

x.

Another Aspect of the crisis is that the company will lose market share and reduce profits. As a result of this, the need to reduce staff benefits is necessary.

These are the main challenges that the management has to face. With these challenges, it is very important to ensure that staff motivation, team spirit, management trust, loyalty to the organization and other people aspect remains positive.

4. Proposed Solution and Approaches In crisis time, the company cannot recover 100% immediately. Therefore, suggest dividing a problem into subunits to overcome the crisis on a case by case basis as soon as possible. As a Head of Human Resources, discussed with the top management to handle this situation with different phases and summarize the action plan with three main categories such as an immediate action, medium term action and long term solutions. At this point of time the management made constant dialogs with the Regional Office in India, America and Germany for their assistance.



4.1

Immediate Actions

The management hired a rented boat and assisted the nearby communities by evacuating them from their houses as their houses were under water. The boat service was used continuously for 3 days and distributed food and water to the flood affected people. The management required to take necessary action fast to reduce further damage of the smooth functioning processes. Immediately, we need to assist our staff members and their families who were affected due to the flood. The company required to work out an action plan to start the production immediately.

4.1.1

Supporting to the Staff

The management decided to help the workforce in various ways. Initially, need to think about recovery of human resources. “Needs in general are a long studied subject. Perhaps one of the best known scholars that has been studying human needs is Abraham Maslow. In his paper ‘A theory of human motivation’ he states all human behavior is motivated by human needs.” (Arno.uvt.nl, 2016) Disaster can be aligned with Maslow’s pyramid of human needs. Taking this hierarchy of needs into actual situation, it becomes clear that in times of crisis, even the most basic human needs are at high risk. During a disaster period people can lose their homes, access to water, food and health care facilities, the overall situation could be unsafe and even the loss of loved ones or one’s own life are at potential risks. Individuals and their psychological, physical and social needs are challenged, causing stress to those that fall victim to a disaster. In order to minimize hurtful stress after disasters, initially basic, physiological needs of victims will have to be met. According to the Maslow’s pyramid of human hierarchy of needs, the management decided to overlook biological and physiological needs of staff members, trade union people and distributors who was affected due to the floods. Safety needs of the Maslow’s hierarchy to be addressed with the second phase of cash contributions. Figure 4.1 depicts Maslow’s pyramid for human hierarchy of needs.



Figure 4.1 - Maslow’s Pyramid of Human Needs

Source: Climbing Maslow's Pyramid, 2009

According to the Maslow’s pyramid of human hierarchy of needs, recommended to release fast foods from outside because hygienic condition was not meeting the required standard to prepare own food within. In addition, recommended to release bottles of water, dry rations and day to day requirements such as clothes, toothpaste, soap, etc. at least for two weeks. Also recommended to make some cash contributions in stages and initially equal amount of food for all. As a second phase will consider the actual damage individually and release cash contributions accordingly.

4.1.2

Commence Company Operations

Recommended to clean the premises, including factory with outsourced cleaning members and voluntary staff members. With the consultation of electrician and plumbing workers, recommended to restore water connected and electricity connection. Recommended to hire mobile toilets and two mobile container officers to set up initial ground work. Furthermore,



recommended to mobilize a hotel for office based staff and will operate office based functions from there for at least a month. Recommended to obtain technical support and quality assurance approvals from India, America and Germany. After two days will request factory associates to come as the basic infrastructure will be in place. Recommended to start one production line after three weeks and other two production lines after two months.

4.1.3

Maintaining Staff Motivation and Satisfaction

To get the efficiency from the employees, all managers need to think about better environment to motivate the staff as mentioned by Laurie Mullins. “You don’t motivate individuals. You provide them with an environment to be self -motivated. It is personal decision, but it is management’s job to provide the right environment.” (Mullins and Christy, 2016) Recommended to conduct meetings with staff members and trade union members, especially in their places to motivate them as well as inform the company towards the recovery situation. The management decided to participate in a cleanup operation with labor forces to motivate them. The top management will be working with the ground staff, the recovery process will be faster. The management is planning to give a better office environment. Recommended to provide dongles for their laptops to continue work in their locations/homes, especially for female back office staff. According to the Herzberg’s two factor theory, important to give more focus for hygiene factors and motivation factors to create motivation among employees by improving their motivational level. Few of the identified areas are in working condition, new infrastructure facilities and cash flow of the staff. Figure 4.2 depicts the Herzberg’s two factor principles. In a natural disaster situation important to look after job satisfaction with the working environment.



Figure 4.2 - Herzberg’s Two Factor Theory

Source: Herzberg’s Two Factor Theory In an unusable working environment, it is also important to recognize staff members about their effort to overcome these challenges. Under motivational factors, staff will be motivated to perform cleaning operations with the management staff.

4.1.4

Documentation of Recovery Process

Recommend to recover flood affected physical documents with the support of The Department of National Archives. According to the Archives department, the company can recover those documents if the documents get wet faster. Some of the identified challenges are to find a suitable location to start the recovery process, identify the important wet files for recovery process, allocation of staff members for document recovery process. Document recovery process is a more time consuming process and the main challenge is to allocate human resources who are willing to work in this time consuming process. Insert blank sheets in-between every document that is filed and to use a hair dryer to dry all sheets that are already wet. Therefore, it is important to educate impotency of the document and proposed to start the process with volunteer staff members. In addition, it was recommended to categorize these documents according to the impotency and start the recovery process from 201 6 to backward. International College of Business and Technology 10


4.2

Medium Term Actions

Through immediate actions, the management considers their biological and physiological needs such as living conditions, food, drinks, sleep, etc. Furthermore, the company is working for business recovery process with the start of the production of the company. According to the Cognitive Theory the importance is on the psychological processes of the staff and how it has affected the motivation as well as their basic needs. It is discussed about staff perceptions of their working environment. In addition, process theory provides more relevant approaches about motivation. Under moderate action, recommended to stabilize the operation and focus more on the area of human resources to motivate them to gain maximum out of them.

4.2.1

Incentives and Additional Payments

Total remuneration is the value of all payments, namely, total earnings and benefits. With this situation the company also in a financial crisis. However, it is very important to ensure that the staff remuneration, including average additional payments such as overtime payments, incentives, etc. is looked at very carefully. “The concept of total reward is exerting considerable influence on reward management.” (Armstrong, 2009) If the company loses the attention of the staff, it will badly affect the management trust. If the management focuses on the wellbeing of staff members in this situation, staff members will give their fullest support towards the company goals, initially on the recovery process and production line implementations. Figure 4.3 describes the reward strategy and main items. It is important to analyse previous benefits and total remuneration to pay as previously to maintain their lifestyles positively. Without considering the current position of the business and factory, required to consider the reward system to overcome this situation faster. Recommended reward scheme will contribute to motivate factory staff as well as labor forces. As a company recommend to pay an additional one-month incentive and average overtime payment to factory associates to continue their living conditions without impacting to the



monthly income since most of the staff members managed their day to day life with additional payments such as overtime payments, incentives, etc. Furthermore, recommend to pay an additional one-month incentive for field sales staff and distributors. Figure 4.3 - The Reward Management System of Elements and Interrelationships

Source: Armstrong, 2007

Speedy recovery of the crisis situation is very much important to commence the operations with motivating staff members of an organization. According to the above, employees will be motivated with the total remuneration and rewards. It will help in speedy recovery from the crisis and company will benefit through the recovery process.



4.2.2

Maintain Current Market Share

With the current crisis situation, the company lost 6 % of the market share. Recommend to import some products from India to cater to the market. After one-month the company will be able to produce commercial products to meet the demands of the local market. Recommend to reduce import volumes gradually and cater to the market using local production. With the smooth operation of other two production lines, the company will be able to cater 100% market equipment without any imports.

4.2.3

Team Spirit

A natural disaster is an opportunity to enhance team spirit, team development within the company to assist affected staff. The management can identify strong individual members closely with the company, it will become increasing cohesive. In the working environment the management can groom identified employees for supervisory functions. Recommend to have one to one discussions to identify problems and needs of factory workers and other staff members. This will be a good escalation path for junior staff members to escalate problems to their top management.

The enhancement of team spirit in a disaster recovery

situation will directly involve to increase the productivity of the comp any.

4.2.4

Management Trust

The management team were the first to be in the factory and the last to go in the evening. Need to reduce the negative impacts that have affected staff due to the unavailability of business continuity plan or disaster recovery plan. In a crisis situation, required to rebuild management trust among the staff members. If they trust the management, automatically increases honesty and loyalty of the employee. Recommend to have a dialog with staff members to obtain ideas to implement disaster recovery process and capture the market share in the long run. If they provide good suggestions according to the expectancy theory recommend to have a reward scheme to motivate them. Implementation of backup plan for disaster recovery, the management can avoid these issues in the future. Staff members will also build trust with the management. International College of Business and Technology 13


4.3

Long Term Solutions

In a crisis situation company make payments to the staff to maintain the motivation of staff members. Long run, it is required to cover those expenses and losses to stabilize the company as well as achieve the annual targets. Key challengers are to grab the existing market share as well as new market. In order to achieve this goal, it is required to assign more targets to sales staff and distributors. To increase management trust, required to implement Business Continuity Plan (BCP) with the staff ideas. With the current experience of the flood issue, recommend to relocate the company as well.

4.3.1

Implementation of Disaster Recovery Plan

Business continuity plan is important for any business, especially for multinational companies. Employees gainfully engage with the production process and the company processes. It is necessary to concentrate on people first. Number one priority is human life. Th en most expensive machinery, raw materials and reputation. Recommend to arrange an alternative storage facility and raw material evacuation process to bare minimum impact of the disaster.

4.3.2

Increase the Production with same Staff Capacity

In order to recover the losses, need to produce and supply extra quantities of beverage items to the warehouses and local market. Therefore, recommend to work late hours and increase the efficiency of production lines by introducing new night-shift. The challenge is to maintain motivation and satisfaction of factory workers. The Porter and Lawler model can be used for analyses, employee performances and their efforts, reward schemes are also important to get more work from the staff on the long run. The company can grant financial or non-financial rewards. With the implementation of more production lines, the management can groom existing staff members for higher positions. It will drive staff for higher job accomplishments, job enrichment and learning. Figure 4.4 shows Porter and Lawler model with the connection of effort, connection and satisfaction.



Figure 4.4 - Porter and Lawler Model

Source: Lawler and Porter's modified expectancy theory, 1967 According to the Porter and Lawler model, with the employee satisfaction, connection with the job description and the ability of the staff members will create more value in the recovery process. In a crisis situation these factors will play a major role for the company performance. Further the employee engaged with the company that employees feel passionate about their jobs, put discretionary effort into their work and committed to the organization. These employees are psychologically committed, innovative, passionate and loyal to the company. Some employees work only for money they meet the basic requirements of their jobs, work with confusion and show negativity. The management faces difficulty with these employees and it is a challenge for the organization. According to the model is depicted in figure 4.5 explains employee effectiveness with employee engagement and employee enablement. To overcome above issues, recommend to allocate challenging and meaningful work, explain opportunities for career advancement and motivate them for higher performance. Proposed to communicate clear vision, discussions to keep on track and develop skills through training programs. Explain the critical priorities and needs to them. It will increase higher levels of productivity and performance of employees.



Figure 4.5 – Model for Employee Engagement to Effectiveness

Source: Adapted from Hay Group, 2009 As explained in this model, employee engagement and employee enablement directly involve for employee effectiveness. To gain maximum effectiveness, it is required to balance financial performance, customer satisfaction, process excellence and people developments. With the effective employee engagement, company can increase production with same staff capacity. In a crisis situation, it is very much easier to adapt any recovery activities/plan in a very efficient way. With the loyal employees in the ABC company, the recovery process in this crisis situation will be going smoothly.



4.3.3

Factory Relocation

Highly recommend to relocate the current office promises to higher geographical area. The main challenge is transport for existing staff members and water supply for beverage production. To overcome these challenges, recommend to relocate the factory as a long term plan within 10Km to 15Km range distance. It may resolve staff transport issue and the water supply issue. Recommend to maintain raw materials and finished goods around 25Km distance. These are future precautionary precautions for sustainable business operations without impacting the people and the organization through the bare minimum concept.

4.3.4

Work and Life Balance

“Work– life balance policies define how the organization intends to allow employees greater flexibility in their working patterns” (Armstrong, 2009) When applying, the management can understand employees with heavy workload have been paid low salaries when comparing with the market average salary structure, inadequate recognition and reward system may cause the work/life imbalance. Figure 4.6 shows Adam’s Equity theory explanation in a graphical way. Figure 4.6 - Adam’s Equity Theory

Source: Examples for The Inputs and Outcomes in The, (2011). International College of Business and Technology 17


In an office, employees are working according to their responsibilities, policies and procedures. More transparent appraisal system needs to be introduced and recommend to implement 180degree model appraisal system which will help the employees to improve their loyalty by having face to face appraisal discussions. It will help to improve individual employees with the support of the management.

4.4

More Recommendations

Recommend to obtain few quotations from contractors for location renovation. It will help to minimize complaints from the factory associates regarding their facilities and working conditions. Until obtain the required approval from the government authority for disposing of solid waste such as furniture, products, etc. proposed to move bare land owned by the company. As per the past records, CEA will release their approvals to destroy over 1Mn plastic bottles and it is necessary to store contaminated products (above mentioned bottles) in the deep sea. Recommend to follow up the approval process to expedite the same. Proposed to allocate one officer to follow-up the insurance claim with the Insurance company to obtain claim fast. Considering the situation of pregnant staff members, recommended to grant one month leave with the salary.

5. Conclusion In a crisis situation, company needs to consider all aspects to remain people and organization aspects positively. ABC Beverages Sri Lanka Limited faced major crisis after long time of operation. Natural disasters can make direct and indirect impact to the people and organization. Natural environmental factors are beyond the human control. The company can take only countermeasures to prevent or minimize the impact from those natural environmental factor changers, these counter measures are important for any organization to prevent from the natural disaster conditions. The company previously not considered flood condition to make prevention action to secure the company condition. In this situation, the management considered human



factors and related implications first. More focus was given to maintain the motivation of the staff. The management decided to handle this situation in three stages. Initially, focused given for immediate actions. As per the Maslow’s pyramid of human needs, the management decided to overlook biological and physiological needs of staff members. The management decided to release fast foods from outside because hygienic condition was not meeting the required standard to prepare own food within. In addition, recommended to release bottles of water, dry rations and day to day requirements such as clothes, toothpaste, soap, etc. at least for two weeks. The management released some cash contribution for staff members who were affected due to the floods.

Through mobilize toilets, office and hotel arrangements were proposed to continue

recovery part and commencing the basic operations after the crisis. Under medium term actions, the company considered additional payment schemes reduce grievances and complaints of the factory staff and sales staff because of loss of income balanced with production incentive, sales incentive and overtime payments. To maintain current market share, recommend to import some products from India to cater to the local market. A natural disaster is an opportunity to enhance team spirit, team development within the company. Recommend to have one to one discussions to identify problems and needs of factory workers and other staff members gradually. Increase the management trust through different approaches. As a long term solution, the management recommended to implement a disaster recovery plan to avoid future impacts and possible losses. In order to recover the losses recommended increasing the production after two months. The management proposed to increase the production with same staff capacity, according to the Porter and Lawler model. Employee engagement and employee enablement directly involve for employee effectiveness. Employee engagement to effectiveness model recommended to increase the production with same staff capacity. Finally, it is recommended to relocate the factory to higher geographical area and increase the work life balance according to the Adam’s Equity theory. The above proposals and recommendations were made to overcome the crisis situation and maintain the sustainable future business to ensure that staff motivation, team spirit, management trust, loyalty to the organization and other people aspects remain positive.



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