2019

People & Organisations MBA 7000

Assignment 2 (Individual Work)

HERATH MUDIYANSELAGE PATAVI KEDARI HERATH

Student ID – CARDIFF/MB/18/388
Cardiff Student ID - 20163475
 EXECUTIVE SUMMARY

The core objective of this project for the subject of “People and Organizations” is to
understand the theories of management of people in organizations, evaluate the
methods in which these theories could be regulated in practise to ultimately succeed
in managing a successful work environment

The task in specific for the project was to properly identify and classify the age
demographics in a work environment, of a Sri Lankan company with more than 100
employees.

For this I have selected the Hayleys Public Company, which is leading Sri Lankan
conglomerate which consists of approximately 30,000 employees. I have chosen this
company for reasons such as its versatile employee demographic, availability of
proper resources, easiness in identifying and critiquing management theories in
context to the company etc., Many Primary sources such as the company annual
reports, company sustainability report, Sri Lanka labour force survey annual reports
as well as secondary resources such as Journals and text books were used to
collect data to carry out the research.

Firstly, the age demographics were identified in the company, while also properly
defining and evaluating the generations of the company. The challenges faced by
each different category of generation was first identified, evaluated and presented. I
have then illustrated the suitable recommendations, management practices and
structures which can be used to effectively hinder these problems faced, in context
to Management theories and principles used throughout the world. Finally, the
conclusion with my summarized analysis for this report was detailed, to successfully
conclude the report.
TABLE OF CONTENTS

LIST OF TABLES................................................................................................................... 3
List of Figures......................................................................................................................... 4
1. Introduction...................................................................................................................... 5
2. Classification of Generations..........................................................................................6
03. Employee Generations with Context of the Company.................................................7
04) CHALLENGES FACED BY DIFFERENT GENERATIONS...........................................10
01) Challenges Faced By Employees of Traditional and Baby Boomers’ Generations
......................................................................................................................................... 10
02. Challenges Faced By Employees of Generation X.................................................11
04. Challenges Faced By Employees of Generation Y.................................................12
05. Challenges Faced By Employees of Generation Z.................................................14
06. Common Challenges Faced By All Generations....................................................16
3. PRACTICAL RECOMMENDATIONS AND SOLUTIONS................................................17
5. CONCLUSION................................................................................................................. 20
6. REFERENCES................................................................................................................. 21
LIST OF TABLES

Table 1 Employee age demographics-projected....................................................................9

Table 2 Employee Generations..............................................................................................9
Table 3 Employee Generations- Managerial Functions........................................................10
LIST OF FIGURES

Figure 1 Sectors of Hayleys PLC...........................................................................................5

Figure 3 Representation of Generations.................................................................................7
Figure 4Employee productivity...............................................................................................8
Figure 5 Employee demographics..........................................................................................9
Figure 6 employee generations............................................................................................10
Figure 7 Employee Productivity............................................................................................12
Figure 8 Employee Turnover................................................................................................14
Figure 9 Employee Costs.....................................................................................................14
Figure 10 Investment on R & D............................................................................................15
Figure 11 Labour Shortage...................................................................................................15
Figure 12 Management Trainee Program.............................................................................16
Figure 13 Organization Structure.........................................................................................18
Figure 14 Matrix Organizational Structure............................................................................18
Figure 15 MASLOW'S HIERARCHY OF NEEDS.................................................................19
Figure 16 Expectancy Theory...............................................................................................19
1. INTRODUCTION

Hayleys Public Limited Company is one of Sri Lanka’s most expanded and
diversified business corporations with over a 140 years of history. It is a Sri Lankan
conglomerate which has a broad spectrum in operations such as manufacturing,
agriculture, power and energy, transportation and Logistics, leisure and aviation etc.
which has also expanded its operations to overseas. The Group accounts for 3.53%
of Sri Lanka’s Export Income and is also the first company to generate an income of
1 billion USD in Sri Lanka, in the fiscal year 0f 2017/18.
It was founded in the year 1878 by Chas P. Hayley, in the British colonial era as
mainly a maritime business. The main objective being to export Sri Lanka’s then
popular export commodities such as cinnamon and other spices, luxury oils and
coconut based products, as well as to import other modern and luxury items from the
west. Chas P. Hayley then made a partnership with P. Kenny in the year 1909. The
company then continued to grow and expand becoming a public limited company in
the year 1954 (65 years previously).
Hayleys PLC is now a business entity which has over 130 businesses, including 9
publicly listed companies in the Colombo Stock exchange, and other subsidiaries.
Hayleys PLC has also ventured for overseas operations in 5 continents.
The major sectors of Hayleys PLC are listed below; (16 in total)
1. Eco Solutions
2. Hand Protection
3. Purification
4. Textiles
5. Construction Materials
6. Plantations
7. Agriculture
8. Consumer
9. Leisure
10. Industry Inputs, Power and Energy
11. Transportation and Logistics
12. Others
FIGURE 1 SECTORS OF HAYLEYS PLC
Therefore, as noted above Hayleys PLC is a
conglomerate having a vast number, and
expanded range of operations which are handled over by approximately 36,000
employees. Hayleys PLC is led by the Chairman and Chief Executive and governed
by the Board of Directors.
Hayleys PLC highly values its employees as the diversity of its employees is
considered and as a vital strength and strategic advantage. The company strives to
be an ‘Equal Opportunity Employer’ while focusing on the suitability of the individual
to the specific post without any rejection or differential treatment due to race, religion,
ethnicity or cultural background (Company Annual Report 2019).
2. CLASSIFICATION OF GENERATIONS

A “Generation” is simply defined as a “group of people born closer to age or around

the same time”. It is theorized that humans who are born in nearer years, tend to
collectively show similar characteristics and patterns in behavior, exude matching
needs and demands, have similar interests as well as undergo similar challenges.
This may be due to the particular group of people experiencing the same external
forces that govern these traits, because they share a common period / era.
Consequently categorizing these human factors according to the age demographic
helps find trends, patterns, shortcomings as well as to eventually find solutions to
overcome these challenges. Segmenting employees of an organization according to
the age demographic, therefore help us find the collective trends in behavior, the
common challenges they face and help us critically analyze the issues to generate
solutions and valuable suggestions to improve the value of employee capital.
It should be noted however that there is no strict standard in defining age
generations, and different studies / experiments have different criteria or age groups
in classifying the age factor. However I have used the most commonly used
categorization for generations according to age (refer below).
For the purpose of this report I have segmented the employees of Hayleys PLC
according to the age, commonly referred as generations as below;
a) Traditional / Silent - 74 years to 91 years
b) Baby Boomers - 55 years to 73 years
c) Generation X - 39 years to 54 years
d) Generation Y - 23 years to 38 years
e) Generation Z - 7 Years to 22 years

A visual representation for the above age categories is given below for better
understanding; (Refer figure 3)
FIGURE 2 REPRESENTATION OF GENERATIONS

03. EMPLOYEE GENERATIONS WITH CONTEXT OF THE COMPANY

As of Mar 31st 2018, Hayleys PLC records a total of 31,388 employees across the
globe, out of which 94% are based in Sri Lanka; which is approximately 29,505.
These employees comprise the different sectors of the conglomerate, as well as the
different locations (Company Annual Report).
Hayleys PLC consider the employee capital a major factor in the productivity and
income generation of the company. The capabilities and achievements of the
employees are considered as a direct asset and, hence an indicator of the overall
success of the company.
A graphical representation of the employee productivity over the years, with the
revenue earned by the company is shown below; (Company Annual Report)
FIGURE 3 EMPLOYEE PRODUCTIVITY
Demographical segmentation according to Sector, Location and Gender is visually
represented below (Company Annual Report)

FIGURE 4 EMPLOYEE DEMOGRAPHICS

As per the objective of this report, when categorizing the employees of Hayleys PLC
according to age demographic, the below was found; (Company Sustainability
Report Projected)
2014 2015 2019
No of Employees 899 887 29,505
Age Distribution- Percentage of employees below 59% 58% 60%
38 years
Number of employees below 38 years 530 514 17,703
TABLE 1 EMPLOYEE AGE DEMOGRAPHICS-PROJECTED
Upon further analysis the employees which represent the different generations are
depicted below (Refer Table 5)

Total Number of
Generation Age Limit %
employees
Generation Z 7 yrs. – 22 yrs. 820 3%
Generation Y 23 yrs. – 38 yrs. 17,341 59%
Generation X 39 yrs. – 54 yrs. 10,688 36%
Baby Boomers 55 yrs. -73 yrs. 623 2%
Traditional 74 yrs. - 91yrs 33 0%
29,505 100
TABLE 2 EMPLOYEE GENERATIONS
*Above figures have been rounded off to maintain the percentage values
However, it is difficult to analyze the human behavioral aspect without the
functionality or operational level of an employee, therefore a more detailed
breakdown of the employees according to the managerial functions is illustrated
below.
It should be noted that these details are based on projections, and under the assumption that a similar
trend was shown in recruitments based on age.

Age Number of Employees

Category
Supervisors Manual Grade Executives Total
(Years)
18-27 308 21% 646 44% 523 35% 1,476 5%
28-37 2,451 16% 10,568 68% 2,617 17% 15,636 53%
38-47 3,356 36% 3,915 41% 2,171 23% 9,442 32%
48-57 1,135 38% 1,135 38% 681 23% 2,951 10%
Above 57 33 0% 0 0% 0 0% 0 0%
Total 29,505 100%
TABLE 3 EMPLOYEE GENERATIONS- MANAGERIAL FUNCTIONS
*Above figures have been rounded off to maintain the percentage values

A graphical representation of the employee generation ratios is illustrated below for

better understanding (Figure 6).
 Employee Generations
Baby Generation
Boomers Z
2% 3%

Generation Z
Generation X
36% Generation Y
Generation X
Baby Boomers
Traditional
Generation Y
59%

FIGURE 5 EMPLOYEE GENERATIONS

04) CHALLENGES FACED BY DIFFERENT GENERATIONS

01) Challenges Faced By Employees of Traditional and Baby Boomers’

Generations

The Traditional Generation comprise of the employees of ages 74 years and 91

years (born from years 1928 to 1945). Hayleys PLC do not have any records of
employees over the age of 75.
The Baby Boomer Generation comprise of the work force over the age of 55 years to
73 years (born from years 1946 to 1964). Hayleys PLC have approximately 33
employees in that category and denote a percentage as low as 0% when considering
the employee age distribution as a whole. The retirement age of Hayleys PLC is
generally 60 years (Company internal sources).
Some Challenges faced by this generation is listed below;
a) Handling Technology / Modern Equipment
The Baby Boomers generation is the oldest generation of the work environment and
they typically struggle when using modern technology or technological devices such
as the laptops, printers, projectors etc. Using a laptop and smart phone is a daily
activity, and it is usually observed that this generation struggles with this very
frequently and usually carters the help of another individual (usually of a lower
generation) to navigate typical challenges faced by them. This can be time
consuming and bothersome.
b) Resistant to change / Less dynamic
The baby boomers’ generation being the oldest generation, also mean they have
been around the longest. Although this typically means that the experience they’ve
garnered through the industry and life in general exceeds the rest of the generations,
this fact also results in a resistant to change.
Globalization and the effects of globalization are inevitable. Technology is being
updated and modernized rapidly. Communication, and other aspects of technology
are becoming rapid and advanced, but adapting and changing with these technology
advancements is necessary to become successful in a work environment. The Baby
boomers generation although, very successful in other aspects in the work
environment such as major industry experience and social aspects, struggle with the
changing environment constantly.

02. Challenges Faced By Employees of Generation X

This generation consist of the employees aged 39 to 54 (born from years 1965 to
1980). Hayleys PLC encompasses roughly 10,688 employees within this category,
which is almost 36% of the total work force. It should be noted that more than 70% of
this workforce is engaged in a supervisory role / management role.
a) Improving quality and productivity
Hayleys PLC is an organization which emphasizes that the quality of work by
employees is high and that the targets and goals are met. The Human Resource
(HR) policy framework has ensured that a Performance Management (PMS) policy is
implemented and maintained. Although this policy helps provide a framework to
improve performance quality, the proper management of the employees so that this
performance quality is ensured is a responsibility of the middle management, thus
becoming a daily struggle for the generation X. (Refer figure 7)

FIGURE 6 EMPLOYEE PRODUCTIVITY

b) Work Stress
This generation is involved in middle management and is involved in day to day
decision making, managing and leading a department or team, therefore the work
stress level is particularly high.
The generation X, should also carry out the goals and tasks set by the top
management (CEO’s, Chairman’s etc.), while also ensuring that their subordinates
are managed efficiently as well. They undertake a leadership role as well as a
subordinate role, therefore being stressed by both the top and bottom levels of the
company
Therefore I think it is fair to assume that the inevitably caused stress and pressure
experienced by the Generation X is at the highest level

c) Responding to globalization & modern technology

Furthermore, the generation X is also not a generation which was born with the
modern technology; they have simply had to learn it by using. Therefore as not as
predominantly struggling with the modern technology, this generation also has a
“love-hate” relation with modern technology and its aspects.
Hayley’s PLC is a company known to be evolving with technology and it uses these
technology advancements to respond to globalization and to conquer the demands
of the modern consumers. Therefore it is essential that the Gen X uses and navigate
technology and respond to the growing needs of the world resulted by globalization.
Hayleys PLC uses employee intranet, accessible to any employee with a facility to e-
mail for day to day operations, therefore being able to navigate technology and its
aspects is crucial.

d) Managing Work Life Balance

The generation X is the generation generally consisting of the “family men and
women”. This generation consist of the age group from 39 years to 54 years. These
employees typically have a family and children, therefore requires time and energy to
be allocated to cater the needs of one’s family. But because of the company
requirements, the generation X often finds it a struggle to properly balance this work
and family life balance, which often leads to high stress situations. This can be
considered as a crucial challenge faced by almost all of its generation.

04. Challenges Faced By Employees of Generation Y

The generation Y consist of the people who are 23 years to 38 years old. They were
born from 1982 to 1996. Generation Y is also sometimes referred to as the "Echo
boomers", because they mostly consist of the children of parents born in the "Baby
Boomers” generation. Hayleys PLC has a number of 17,341 employees from this
generation, which is roughly 60% of the total workforce. Therefore it is safe to
assume that Hayleys PLC is company which is being driven by the Gen Y or the
youth of the nation.
Some of the challenges faced by this generation is listed below;
a) Coping with Temporariness
Hayleys PLC, even though consisting a large population of the organization, also
experiences a high level of employee turnover. Employee resignation of 2009 for the
age group of 21-30 has been recorded at 83% (Figure 6).

FIGURE 7 EMPLOYEE TURNOVER

The reasons for these employees’ resignations can vary from company stress,
internal grievances etc. but the essence of the employees leaving the company is
because the Gen Y is focused on change and always in search of better
opportunities.
But because of this “temporariness”, the need to continually train and adapt to new
operational and managerial aspects is a must. The time, energy and resources
dispensed for this can sometimes be challenging and hard for most employees.
From the company aspect, the capital rummaged to train a new employee is lost, the
chain of command or team work which was naturally already established due to time
was also lost, while there is also an additional expense required to hire and train new
employment.
The investment for training employees in the year 2019 at Hayleys PLC was Rs.105
Million. (Refer Figure 9), while the average training hours per employee was 5.31
hours.

FIGURE 8 EMPLOYEE COSTS

b) Stimulating Innovation and Change

The generation Y is also called the “Internet Generation”. It is the generation which is
mostly adapt to new technology and its advancements, with a growing curiosity and
need to continuously grow and nurture. However it is not easy to establish new
methods and to improve new technology can be challenging at times.
Hayleys PLC is a company where research and innovation is encouraged and
investments are made for research and development as well as for new technology.
Hayleys PLC has made a total investment of Rs. 278Mn for Research and
Development and a total pf 197 new products have been developed for the financial
year 2018/18 (Figure 9).

FIGURE 9 INVESTMENT ON R & D

 c) Responding to labour shortage
In the company annual report it is recorded that several sectors of Hayleys PLC
experienced labour shortages in the year 2018/19. Labour force participation rate
has deteriorated from 51.8% to 52.2% (figure 10). Even though this percentage
decrease can be argued as insignificant, it should be noted that Hayleys PLC is a
company which has focuses on manufacturing, and therefore even a slight decrease
in the labour force can be a huge impact on operations and thereby threatening the
profitability of the company as a whole.

FIGURE 10 LABOUR SHORTAGE

05. Challenges Faced By Employees of Generation Z

The generation Z consist of the workforce from the ages 7 years to 22 years. They
are basically the novices of the employee task force, freshly out of school or
university and typically consist of Trainees / Interns.
The Gen Z has 820 employees, which is approximately 3% of the total work force.
The company is involved on hiring young recruits. The Hayleys Management Trainee
Program which is focused on fresh graduates demonstrates this fact effectively.
(Refer Figure 12)

FIGURE 11 MANAGEMENT TRAINEE PROGRAM

Some challenges faced by the Generation Z are listed down below as follows;
 a) New experiences
This generation are the new entrants to the industry as well as the society. New
experiences can be challenging, with the learning curve very steep. Work life can be
a challenge in many ways such as in learning operations, achieving targets, time
management, risk analysis and even data entry has to be precise and efficient.
b) Improving Customer Skills
Generation Z is the generation with no prior experience of working with customers.
Customer skills which are directly proportionate with experience can be very
challenging and intimidating to new recruits. These particular skill set cannot be
learnt by paper or studying, and has to be learnt through engaging with customers
and through direct association and trouble shooting.
c) Improving People Skills
This Gen Z has had minimum exposure to society and community. Therefore
engaging with people from different backgrounds, behaviors, manners etc. can be
challenging. The talent of managing people, handling grievances, workplace
conflicts, differences of opinions, subordination, communication, public speaking,
leadership etc. would be some major challenges for the generation Z.

06. Common Challenges Faced By All Generations

a) Managing Workforce Diversity

Workplace diversity is inevitable. Specially in a widely spread and extended
corporation such as Hayleys PLC having different operations, managements as well
geographical variations, it is crucial that the work place diversity is handled with care
and competence. Because the ultimate peace and harmony, which is a necessary
factor for team work can be hindered through unnecessary scruples or erratic
behavior.
Hayleys PLC is considered the “most diversified company of Sri Lanka”.
b) Working in Networked Companies
Networked companies have a vast number of interconnections and bonds, formed
across the sectors, locations, management tiers, different operational teams etc.
Managing all these links effectively can be challenging. Especially for a company
such as Hayleys PLC, which has 16 sectors, spanning across 17 countries, and the
9 provinces of Sri Lanka.
c) Improving Ethical Behavior
d) Discrimination
e) Inter personal relationships at the work place
f) Organizational Politics
g) Sexual Harassment and intimidation
3. PRACTICAL RECOMMENDATIONS AND SOLUTIONS

1) Organization Structure
Organization structure is crucial for the effective management and operations of an
organization. “Formal hierarchies offer advantages like unification of mission and
goals, while employees in excessively rigid hierarchies can feel they have no power
or autonomy. As with specialization, the key is striking the right balance” (Robbins S
& Judge T, 2010).
Organizational structure determines the Performance and Satisfaction of the
employees of an organization (Refer figure 13)

FIGURE 12 ORGANIZATION STRUCTURE

Hayleys PLC is an organization with a wide range of operations and functions,
therefore a matrix organizational structure, which combines 2 or chains of
commands is recommended.
This opens and influences communication flows efficiently. (Figure 14)

FIGURE 13 MATRIX ORGANIZATIONAL STRUCTURE

 2) Motivation
Motivation for employee productivity is necessary. It is noted that the motivated
employee’s productivity is significantly higher than of disgruntled or unhappy
employees.
Maslow’s hierarchy of needs is a theory which is widely used to described the levels
of human needs which need to be satisfied and the amount of emphasis each level
of the hierarchy should be given,
Accordingly the hierarchy of needs are;
1) Physiological
2) Safety
3) Social
4) Esteem
5) Self-actualization
Therefore according
FIGURE to HIERARCHY
14 MASLOW'S this theory,OF we
should NEEDS
identify which level of need has not
been satisfied, and work towards the top of
the tiers.

3) Performance Management
It is fairly obvious that any employee who is plausible for a performance reward will
be more susceptible to higher employee performance levels.
Victor Vroom’s Expectancy Theory states that employees will be motivated to exert a
higher level of effort when they are lead to believe that they will be appropriately
rewarded.

FIGURE 15 EXPECTANCY THEORY

Hence Performance Reviews, Performance bonuses, KPI Reviews and other target
achievement rewards should be implemented, while healthy competition among the
employees should be encouraged.

4) Establishing Company Policies and Regulations

Company regulations and policies should be maintained and governed strictly. The
employees should always be encouraged to adhere to these and be penalized when
they are not followed, so that employees are ensured of a safe, flexible, reasonable
work environment at all times.
5) Providing Training and Education
The employees of all ages should be encouraged to grow and educated. The
company should be providing of resources for this to build a strong and efficient
workforce.
6) Networking among the employees as well externally should be encouraged
The company should be involved in gaining exposure to its employees. The
workforce should be updated on new technology and systems, establish other
company / customer relationships etc. for a higher efficiency in operations and
management.
7) Team building and recreational activities
The company should also have significant recreational activities such as company
parties and ceremonies, encourage sports, establish societies and clubs. These
activities will not help reduce the stress of the employees but will also encourage
team building, personal development, leadership skills, and communication skills etc.
which are vital
5. CONCLUSION

In this report I have strived to explore the different “People and organization
management approaches and theories they are based on with specific reference to
the age demographic of the organization.
First I have identified and defined the generations of employees, then I have
evaluated the employees of the organization in relation to the different generations. I
have then critically researched and depicted the various struggles and challenges
faced or experienced by each generation, as well as challenges faced by all
generations in uniform. The challenges were then critically analyzed, so that a set of
solutions and recommendations were presented which may help overcome each
type of challenge. The recommendations were also expressed with the specific
theories and management principles articulated where the suggestion was based on.
In completing this project I gained an in depth understanding of the various
management principles which are used by different industries for people
management. I was able to study the various types of challenges faced by the
employees, factoring in the age demographic. The critical knowledge I received
when establishing my recommendations with a proper basis of the management
principles is valuable as a management student as well as an employee.
The challenges I faced were in collection of data. Especially because Hayleys PLC
is a company which operates in different sectors, data was specific to each sector.
Time management, academic writing, gathering source books etc. were also some
of the challenges.
Therefore, I would like to conclude that I have critically analyzed organization
management approaches and principles and successfully evaluated a set of
solutions for problems faced by employees in the industry.
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