PEOPLE AND ORGANIZATION

  Employee Motivation Money vs Recognition in Sri Lanka Introduction Employee motivation is a key factor that affects how well people work in an organization. In Sri Lanka, many companies are still trying to understand what truly motivates employees. A common question is: Do employees work harder for money, or for recognition? Traditionally, most organizations in Sri Lanka have focused on financial rewards like salaries, bonuses, and allowances. This is important, especially because of the current economic situation in the country. Employees need money to cover their daily expenses, take care of their families, and keep a basic standard of living. Research shows that financial rewards have a strong positive effect on employee motivation, especially for employees at the operational level. This means that higher pay can directly improve employee performance and productivity. This can be explained by Maslow’s Hierarchy of Needs , where employees first focus on basic needs such as ...

  Unused Leave: Better Saved or Paid?  A Sri Lankan Perspective on Employee Motivation Introduction In today’s busy work life, employee well-being is important. One area many companies overlook is how they manage annual leave. In Sri Lanka, organizations often face a choice: allow employees to carry forward unused leave or pay them for it. Both options seem good, but they affect employee motivation in separate ways. Traditionally, paying employees for their unused leave (known as leave encashment) is viewed as a financial reward. In the current Sri Lankan economy, many workers prefer getting extra cash over taking time off. This is linked to extrinsic motivation, where people are driven by money. Research suggests that financial incentives like this can boost motivation and performance, especially in smaller companies, making leave encashment a popular short term benefit. "When viewed through the lens of Herzberg’s Two-Factor Theory , annual leave typically functions as a Hy...

Favoritism at Work Introduction In an ideal world, success is the byproduct of hard work, performance, and skill. However, in many modern organizations particularly within the unique cultural landscape of Sri Lanka decisions are not always merit based. Often, employees are treated differently due to personal relationships, school ties, or internal politics. This is workplace favoritism , and it is a silent predator of organizational health. What is Favoritism? Favoritism occurs when managers grant special treatments such as promotions, choice assignments, or rewards to certain employees based on personal bias rather than objective performance. While it may seem like a localized issue, research indicates it can cause systemic damage to both the individual and the collective. The Sri Lankan Reality In Sri Lanka, where interpersonal relationships and hierarchy are pillars of the social structure, favoritism can often be normalized. This is often seen through: Preferring employees fr...

  Employee Insurance in Sri Lanka A Benefit or a Necessity in Today’s Economic Climate? In today’s uncertain economic environment, Sri Lankan employees are facing rising living costs, healthcare expenses, and financial instability. In such a context, employee insurance especially health and life coverage has moved beyond being a simple “extra benefit.” It is increasingly becoming a necessity for both employees and organizations. In the past, many Sri Lankan companies mainly focused on salary as the main reward. But now, studies show that employees value more than just money. Benefits like health insurance also help improve motivation and performance. A recent study found that when companies offer these benefits, employees feel more secure and work better. This shows that today, employees care about both income and their wellbeing. One major reason employee insurance is becoming essential is the rising cost of healthcare. While Sri Lanka has a public healthcare system, many empl...

  Retirement Age and Early VRS in Sri Lanka Impact on Employees and Organizations In recent years, Sri Lanka has seen significant changes in retirement policies and the introduction of Voluntary Retirement Schemes (VRS). These changes are not just legal or financial decisions, they directly affect employees, organizations, and the overall workforce structure. From a People and Organization perspective, this topic highlights how human resource decisions shape both employee wellbeing and organizational performance. The Resource-Based View (RBV) theory  argues that a firm's internal resources and capabilities rather than external market factors are the primary drivers of sustainable competitive advantage. It posits that competitive advantage is achieved when resources are Valuable, Rare, Inimitable, and Organized (VRIO) to exploit opportunities.  One major change was the introduction of the Minimum Retirement Age of Workers Act No. 28 of 2021, which increased the minimum r...

  When Mobile Network Companies Keep Changing Packages Impact on Employees   Mobile network companies in Sri Lanka work in a highly competitive environment where new data packages, promotional offers, and pricing changes are introduced often to attract customers. While these changes improve market competitiveness and customer choice, they also create significant pressure on employees who must constantly adapt to new systems, targets, and customer demands. From a People and Organization perspective, this situation can be explained using the Job Demands–Resources (JD-R) model. According to this model, employee stress increases when job demands (such as workload, time pressure, and emotional demands) are high, but resources (such as training, support, and clear communication) are limited. In telecom companies, frequent package changes increase job demands because employees must quickly learn latest offers and explain them to customers, often without sufficient time or trai...

Leading Through Hidden Stress Supporting Managers in High Pressure Workplaces In today’s workplaces, a new occurrence is emerging as a silent threat to performance and well-beign. Unlike burnout or resignation, Hidden Stress means employees who continue working but experience declining motivation, emotional exhaustion, and disengagement beneath the surface. In high stress environments, managers are not only responsible for team outcomes but are also increasingly vulnerable to this hidden strain. The Sri Lankan context makes this issue even more critical. Economic instability, rising cost of living, and increased workload pressures have intensified workplace stress. Research highlights that work related stress and burnout are rising across both public and private sectors in Sri Lanka, often exceeding employees’ emotional capacity (Daily FT) . This study explores how organizations can support managers using modern theories and evidence, with a focus on the Sri Lankan context. Further...

  NUMBER PORTABILITY IN SRILANKA A NEW CHALLENGE FOR EMPLOYEES Mobile Number Portability (MNP) is a simple idea. It allows customers to switch from one mobile network to another while keeping the same phone number. https://www.trc.gov.lk/content/files/consultation/ConsultationPaper_NumberPortability.pdf In Sri Lankan mobile users stayed with their network providers not necessarily because they were happy, but because they were stuck. Your phone number is your identity and losing it to switch networks was too high a price to pay. This looks like a technology or telecom topic. However, it has a strong connection to people and organizations, especially how employees work and how companies manage customers. The Sri Lankan telecom market is already highly competitive, with several operators trying to attract and retain customers. Research shows that customers usually switch networks based on price, service quality, and overall experience (Kumaresh, 2022). When number portability is ...

  TALENT LOSS VS TALENT RETENTION WHAT ORGANIZATION NEED TO UNDERSTAND? Winning the Tug-of-War: Why Good People Leave and How to Make Them Stay ​ In the modern business world, companies are caught in a constant tug-of-war. On one side, you have Talent Loss (people walking out the door), and on the other, you have Talent Retention (the art of giving them a reason to stay). In Sri Lanka, organizations are facing a growing challenge of employees leaving for better opportunities, both locally and abroad. This is known as talent loss, while talent retention focuses on keeping skilled employees within the organization. Many employees leave not only for higher salaries but also due to limited career growth, poor leadership, and lack of recognition. Labour laws like the Shop and Office Employees Act and Wages Boards Ordinance provide basic protection for workers, but they do not fully address employee satisfaction or motivation. Research shows that employees are more likely to stay...