MBA P&O Final PDF

Master of Business Administration
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People & Organisations 2
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Human Resource Aspects in Crisis Situation of

ABC Beverages Sri Lanka Limited
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CL/Cardiff MB/
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People & Organizations
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MBA 7000

iii
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

iv
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

v
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 - Maslows Pyramid of Human Needs .......................................................................... 8
Figure 4.2 - Herzbergs 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 - Adams Equity Theory .............................................................................................. 17

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Executive Summary
ABC Company is the number one nonalcoholic beverage company and worlds 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
manner for 3 days. On 25th 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.

vii
Abbreviations
CEO -
Chief Executive Officer
CEA -
Central Environment Authority
BCP
Business Continuity Plan

viii
1. Introduction
1.1
The ABC Company
ABC company is the number one nonalcoholic beverage company and worlds 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

1
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

2
2. The Crisis
On 15th 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
days. On the 16th night water came into the warehouse. The management team decided to stop
the deliveries of beverages and focus was diverted to store goods at higher levels. On 16th 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.

3
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
plant and offices. On the 17th 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
warehouse. On 18th 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
premises. On 22nd 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.

4
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 recovery.
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.
Complaints from the factory associates regarding their facilities and working conditions.
ii.
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.
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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.

6
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 Maslows 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
ones 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 Maslows 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 Maslows hierarchy to be
addressed with the second phase of cash contributions. Figure 4.1 depicts Maslows pyramid for
human hierarchy of needs.

7

Figure 4.1 - Maslows Pyramid of Human Needs
Source: Climbing Maslow's Pyramid, 2009

According to the Maslows 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,
8
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 dont motivate individuals. You provide them with an environment to be self-motivated. It
is personal decision, but it is managements 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 Herzbergs 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 Herzbergs two factor principles. In a natural disaster
situation important to look after job satisfaction with the working environment.

9

Figure 4.2 - Herzbergs Two Factor Theory
Source: Herzbergs 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 2016 to backward.
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

11
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.

12
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 company.
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.
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. Then 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.

14
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.

15

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.

16
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

Worklife 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 Adams Equity theory
explanation in a graphical way.
Figure 4.6 - Adams Equity Theory
Source: Examples for The Inputs and Outcomes in The, (2011).

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

18
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 Maslows 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 Adams 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.

19
References
Armstrong, M. (2009). ARMSTRONGS HANDBOOK OF HUMAN RESOURCE
MANAGEMENT PRACTICE. 11th ed. London N1 9JN: British Library Cataloguing, pp.741
- 996.
Arno.uvt.nl. (2016). [online] Available at: http://arno.uvt.nl/show.cgi?fid=133752 [Accessed 23
Jul. 2016].
Drury, J., Kemp, V., Newman, J., Novelli, D., Doyle, C., Walter, D. and Williams, R. (2012).
Psychosocial care for persons affected by emergencies and major incidents: a Delphi study
to determine the needs of professional first responders for education, training and
support. Emergency Medicine Journal, 30(10), pp.831-836.
http://www.ijbmi.org. (2016). Application of the Maslows hierarchy of need theory; impacts
and implications on organizational culture, human resource and employees performance.
[online] Available at: http://www.ijbmi.org/papers/Vol(2)3/Version-2/G233945.pdf
[Accessed 16 Jul. 2016].
HUSEMAN, R., HATFIEL, J. and MILES, E. (2016). A New Perspective on Equity Theory: The
Equity Sensitivity Construct. [online] http://web.mit.edu. Available at:
http://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Justice/Huseman.pdf
[Accessed 23 Jul. 2016].
Juliegilhuly. (2014). Coca-Cola Organizational Complexity. [online] Available at:
https://juliegilhuly.wordpress.com/2014/03/01/coca-cola-organizational-complexity/
[Accessed 24 Jun. 2016].
King, P. (2009). Climbing Maslow's pyramid. Leicester: Matador.
Lk.coca-cola.com. (2016). Home. [online] Available at: http://lk.coca-cola.com/en/home/
[Accessed 30 Jun. 2016].
Mullins, L. and Christy, G. (2016). Management and Organisational Behaviour. 9th ed.
Financial Times Prentice Hall, 2010, p.479.

20
Newcentre.org. (2016). Basic Needs | http://newcentre.org. [online] Available at:

http://www.newcentre.org/programs/basic-needs/ [Accessed 15 Jul. 2016].
ReliefWeb. (2016). Sri Lanka: Floods and Landslides Situation Report No. 2 (as of 26 May
2016). [online] Available at: http://reliefweb.int/report/sri-lanka/sri-lanka-floods-andlandslides-situation-report-no-2-26-may-2016 [Accessed 6 Jul. 2016].
The Coca-Cola Company. (2016). Coca-Cola Journey Homepage. [online] Available at:
http://www.coca-colacompany.com/homepage [Accessed 27 Jun. 2016].

21

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Master of Business Administration

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People & Organisations 2

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International College of Business and Technology

Master of Business Administration

Human Resource Aspects in Crisis Situation of

People & Organizations

International College of Business and Technology

Master of Business Administration

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Master of Business Administration

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

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

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

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

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

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

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

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

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

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

International College of Business and Technology

Master of Business Administration

International College of Business and Technology

Master of Business Administration

International College of Business and Technology

Master of Business Administration

Chief Executive Officer

Central Environment Authority

Business Continuity Plan

International College of Business and Technology

Master of Business Administration

The ABC Company

1.1.1 Company Structure

Source: Juliegilhuly, 2014