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Moreover, according to Lloyd (2005, pp.929 – 943) the firm’s competitive advantage was its skilled labor and workmanship as the products were fully handmade. The organization had a total of 110 employees who reported to their middle level managers who reported to the entrepreneur thus having a comparatively flat organizational hierarchy. The operational level workers were on daily wages, which were the industry average rates. The management however received monthly wages. The Sri Lankan shoe industry has a total of 30 medium scaled and 3000 small-scaled manufacturers. The industry produces a wide range of shoes from canvas, sports and leather shoes and is also exporting finished products to EU and USA. As per a research done by the Development of Board Sri Lanka, the shoe industry witnessed a decline from 2007 onwards but the 2010 witnessed a surge in the export market due to the growth in the local tourist sector. However, the workforce in the industry is n issue. This is because the skill is making shoes completely by hand. But this is a difficult task and most firms have not incorporated technology into the process of production, which is not very lucrative for the workmen. According to Lloyd (2005, pp.929 – 943), this is because their production level is low and the firm cannot deliver larger orders and often cannot meet deadlines. Thus the craftsmen are not given enough bonuses and motivations. This in turn has caused the workers to drift away from the skill and the skill is not being handed over to their children. Moreover, the basic pay scale, recognition in society and the living standards of these workmen are not high which is yet again a de-motivating factor. The skill of these workers is safeguarded neither by the industry people nor by the government and this is a threat to the industry. Adding to this, there is not enough training and technology in the footwear industry especially in the SME sector. 2.2 Motivation The motivation level of the workers in the footwear industry of Sri Lanka is generally low. This is because the government and the industry have not given it enough importance, as they do not realize the power of labor. There is underproduction in the industry and it is primarily due to the fact that the labor are not working at full capacity nor are they receiving state of the art training in technological advancements. According to Lloyd (2005, pp.929 – 943), motivation is the essence and the core of management and is an effective tool to make the labor force perform more meaningfully. Motivation is important to produce the drive in a labor to give his 100% when he is working. Without motivation, a worker with the potential to produce 100% may not be able to do so as he doesn’t have the drive to do so. According to Hofstede (2005),
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3 Pages(750 words)Dissertation
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