THE STYLE OF LEADERSHIP AND ITS IMPACT ON EMPLOYEE ENGAGEMENT OF RUBBER REGIONAL PLANTATION COMPANIES OF SRI LANKA

Abstract

One of the main problems faced by the rubber plantations managed by Regional Plantations Companies (RPC) today is the short supply of experienced and skilled rubber harvesters. This negatively affects the financial performance of the estate/company through low worker and land productivity as well as shorter replanting cycles. The plantations managed by RPCs lose from 12.6 kgs. to 223.5 kgs. of rubber crop per hectare of land annually, due to absenteeism, as such, having to hire casual workers, mostly semi or unskilled (Rodrigo, et al., 2004). Studies revealed that 12 % of rubber harvesters are generally absent every day and 37 % of harvesters employed in the plantation sector are not skilled (Rodrigo, 2006). Plantation managers are compelled to employ casual or substitute harvesters in order to minimise loss of crop due to tapping blocks getting vacant, as a result of absenteeism. Casual or substitute harvesters are mostly semi-skilled and lower-skilled in tapping which leads to both, high bark consumption and lower crop. The yields obtained by unskilled harvesters are generally 25% less than those of skilled harvesters (Nugawela, et. al 2001). Absenteeism also can be considered as a problem in the sector as the current rate of absenteeism in RPCs managed Rubber Plantations stood at an average of 20% as at 2013. Employee Engagement (EE) is about the psychological perception of an employee about the organisation and its leadership. According to a research conducted by Gallup in 2013, high levels of EE, is positively correlated to minimising absenteeism. According to Kohli (2013), “High attrition and absenteeism among Sri Lanka's manufacturing sector employees are alarming indicators of a disengaged workforce”. Leadership style is the manner and approach of providing direction, implementing plans and motivating people (Newstrom & Keith, 2002) and the first major study of leadership styles was performed in 1939 by Kurt Lewin (Lippit & White, 1939). Building on the work of the Ohio State and Michigan Studies Blake, R.; Mouton, J. (1964), the University of Texas proposed a two dimensional theory called the “grid”. The two dimensions are task and relationship orientation. Task-oriented leadership is a style in which the leader is focused on the tasks that need to be performed in order to meet a certain production goal. Task-oriented leaders are generally more concerned with producing a step-by-step solution for a given problem or goal, strictly making sure that in reaching target outcomes, the deadlines are met. Relationship-oriented leaders emphasize communication within the group, show trust and confidence in group members, and show appreciation for the work done. The model has five of its leadership styles such as Impoverished (the least concern for people and for production), Authoritative (more concern on production not people), Country Club (the most concern for people), Team leadership (stress high production and employee satisfaction equally) and middle of the road (has a balanced concern for both production and people) Styles. Each axis on the grid is a 9 point scale with 1 meaning low concern and 9 meaning high concern (Northouse, 2010). Perrin (2003), suggests the benefits of EE studies as abilities to tap the potential of the organisation to become a “great place to work” through building trust in colleagues and ensuring employee pride and enjoyment. Segmentation is the key to managing employee commitment and productivity. According to the study, great managers are the key to achieving an engaged workforce, and they have highly effective leadership styles and they are somewhat closer to 9.9 quadrant of Blake & Mouton Leadership Style Grid. This research therefore is an attempt to undertake an empirical study on the leadership style of the managers and its impact on the level of EE of their rubber harvesters. Available literature supports the direct inverse relationship between EE and absenteeism. (CLC, 2004) This research will address indirectly the knowledge gap between absenteeism and leadership style of the supervisor (manager).