Programme : MSc in International Business

Year Semester : 2021 - Trimester 02

Cohort : 03

Module : Intercultural Leadership and Personal Development

Tutor’s Name : Dr.Thusitha Gunawardhana

Student Name(s) : Zahra Habeeb (100022407)

Poornima Gunathilake (100021833)

George Cliff Kennedy (100021825)

Charitha Jayasinghe (100021824)

Sachithra Warusevitane (100021831)

Assessment No : 01- Group Presentation and Report (2000 Words)

Presentation Date : 21 March 2021

Submission Date : 27-March-2021

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Table of Content
1.0 Introduction ............................................................................................................................... 2
2.0 Rationale ................................................................................................................................... 2
3.0 Research Aim ....................................................................................................................... 3
3.1 Research Objectives ......................................................................................................... 3
3.2 Literature Review.................................................................................................................. 3
4.0 Methodology and Data Collection ............................................................................................ 6
5.0 Data Analysis ............................................................................................................................ 6
6.0 Discussion ............................................................................................................................... 10
Meril. J. Fernando’s Leadership to the Management and Organizations ................................. 10
Meril. J. Fernando’s Leadership to Himself ......................................................................... 10
Meril. J. Fernando’s Leadership to the Organization ........................................................... 11
7.0 Conclusion .............................................................................................................................. 13
8.0 Reference List ......................................................................................................................... 14
Appendix ....................................................................................................................................... 17
Appendix 01: Thematic Analysis Questionnaire: Results Meril J Fernando ............................ 17

List of Figures
Figure 1- Full Range Leadership Model ......................................................................................... 4
Figure 2- Relationship with transcendental leadership theory and other leadership theories ......... 5
Figure 3 - Integration and extension of Transcendental leadership Theory ................................... 6
Figure 4 - Theme 1: Spirituality...................................................................................................... 8
Figure 5 - Theme 2: Internal Locus of Control ............................................................................... 9

List of Tables
Table 1 - Themes and Codes ........................................................................................................... 7

Abbreviations
FCCISL - Federation of Chambers of Commerce & Industry in Sri Lanka
DNA - Deoxyribonucleic Acid
MJF - Meril J Fernando

1
1.0 Introduction

Meril J Fernando, found and built Sri Lanka’s largest tea brand, Dilmah, is considered the pioneer
of creating the first Sri Lankan global brand, even extending beyond the tea industry. Born on 6
May 1930, he schooled in Maris Stella College (Negombo) and Saint Joseph’s College (Colombo).
At the age of 18, he joined the tea industry as a taster, being one of five Sri Lankans to be selected
and sent to London for training. When in London, he also observed what he believed was a system
of colonial exploitation that treated tea producing countries as raw material suppliers, while value
adding activities such as branding was carried out in England. This sparked within him the dream
of starting his own tea brand. After returning from London in 1954, Meril J Fernando started
working with AF Jones and Co. Ltd, a family-owned business. They would later sell the business
to him and a few of his partners before leaving the country. Meril J Fernando was concerned about
the multi-origin tea which had sprung up all over the market, purporting to be Ceylon tea. Even
though the production of this tea was cost efficient for the manufacturer, the consumer was being
provided with tea of poor quality while at the same time eroding the name of Ceylon tea. After
many lengthy battles, he managed to secure places in various outlets to sell single-origin Ceylon
tea, which was an instant hit among consumers. He is thus known for bringing integrity back into
tea and pioneering the concept of single-origin tea. He has two sons, Dilhan and Malik, whose two
names he coined together to form Dilmah. One of his earliest obstacles in going global was getting
a toehold in Australia. However, once he managed to do this, Dilmah became extremely
successful.

2.0 Rationale

Meril J Fernando is highly acknowledged for his revival of the overly-exploited Sri Lankan tea
industry, and bringing Ceylon tea as the most desired amongst global tea lovers. Furthermore,
despite his commitment to economic value creation, Meril J Fernando proves characteristics of
altruism with his initiation of extending his duties for the society and the environment (Greenberg,
McKone-Sweet, Wilson, 2013), through the commencement of the MJF Charity Foundation,
which is donated a minimum of 10% of Dilmah’s pre-tax profits each year (MJFfoundation.org,
2016). This is based on his philosophy of sharing the commercial success with the underprivileged

2
by operating “business as a matter of human service” (MJFfoundation.org, 2016), which
outreaches to support over 10,000 underprivileged individuals a year.

Remarkably, Philip Kotler cites Dilmah where he explicitly attributes the success of Dilmah to
“the founder’s personal commitment, [which] have eventually become the company’s brand
DNA” (Daily Ft, 2019), where he carefully disseminated amongst his two sons and his employees
(Daily Ft, 2019). In addition, while honored with the title of ‘Deshamanya’ (Dilmah, 2021), Meril
J Fernando has been thus far bestowed with accolades such as “Responsible Capitalism’, in
recognition for his social commitment (MJFfoundation.org, 2016), Oslo Business for Peace
Honoree in 2015 and won the Sri Lankan of the year in 2016 (MJFfoundation.org, 2016). Further,
Meril J Fernando has been awarded the Excellence Award- Hall of Fame by the Federation of
Chambers of Commerce & Industry in Sri Lanka (FCCISL), becoming the first Sri Lankan to
receive the title in the history of FCCISL.

3.0 Research Aim

The aim of this study is to analyze the leadership characteristics of Meril J Fernando in securing
the success of his organization known as Dilma (Pvt) ltd, that is the only Sri-Lankan global brand
to date. This study aims to describe the leadership characteristics of Meril J Fernando that has led
to the success of Dilma as the only global Sri-Lankan brand.

3.1 Research Objectives

1. To examine the leadership characteristics based on a single case study scenario.

2. To identify the level of impact of the success created for Dilma due to such leadership
characteristics.
3. To analyze how such characteristics can be implemented to local firms in building Sri
Lankan Global Brands.

3.2 Literature Review

The influence of the organizational climate through the leadership style can impact financial
performance (Goleman, 2000). Prentice, (2004) & Benscotter & Rothwell, (2012) defines

3
leadership as the “the accomplishment of organizational and individual goal through the direction
of human assistants systematically''.

. Hofman & Morgeson, (2004) lists the leadership theories as trait theory; behavioral theory;
contingency theory; and power and influence theory. Before the 1970’s the leadership theories
were concentrated on trait, behavioral and contingency theory. Bass & Avolio, (1997) introduced
the full range leadership model that conceptualizes the transformational and transactional aspect
of leadership that illustrates the integration of the organizational goals and strategies through the
influence of the leaders' supremacy over subordinates' manners.

Figure 1- Full Range Leadership Model

Source: Bass & Avolio, (1997)

Bass, (1995), highlights that transformational leaders are advanced morally than transactional
leaders, and advanced in motivating their followers beyond the “need hierarchy (Maslow, 1954)”.
However as illustrated in figure 1, Antonakis, et al., (2003) highlights that the full range
encompasses highly avoidant to highly inspirational and idealized, indicating other leadership
constructs. Therefore, Sanders, et al., (2003) highlights the concept of transcendental leaders that
utilize relational leadership concepts while embracing elements of personal/trait leadership as
highlighted by figure 2.

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 Figure 2- Relationship with transcendental leadership theory and other leadership theories

Fernando, et al., (2009) explains that transcendental leaders are distinguished from
transformational leaders by enhanced motives such as altruistic love, a sense of wholeness, and
well-being without desire to manipulate others. Sanders, et al., (2003) further argues that additional
steps are required to be a transcendental leader is not only communicating and embracing deep
moral values, but also expand concerns of their followers’ spiritual journey and divine awareness
associated with the highest level of moral and spiritual development. Based on the concepts by
previous researchers it can be observed that the development and concern of an employee’s
spiritual journey represents the transition from counseling and coaching activities towards
mentoring.

Previous research has indicated strong evidence to support claims made that transformational
leadership style was appreciably more effective than transactional leadership style (Howell &
Avolio, 1993; Burpitt, 2009). Sanders, et al., (2003) traces that the relationship between
transactional, transformational and transcendental theories of leadership can be defined along the
hierarchical continuum as depicted in figure 2, as leaders develop from external to internal locus
of control, from minimum to high level of spirituality they progress from transactional to

5
transformational to transcendental styles. It can therefore be highlighted that the more a leader’s
locus of control and higher the spirituality the more effective they consider to be.

Figure 3 - Integration and extension of Transcendental leadership Theory

Source: (Sanders, et al., 2003)

4.0 Methodology and Data Collection

The research philosophy is positivism with an inductive approach administering a qualitative case
study basis. Information gathering of Meril. J. Fernando will be gathered through secondary
sources that include content from previous interviews conducted that are published in accepted
academic journals and review papers using thematic analysis.

5.0 Data Analysis

The data collected for this research is analyzed based on thematic analysis developed by Riessman
(2008). A list of questions was identified based on past research by Isebor, J. (2018) to identify
leadership characteristics that Meril. J. Fernando possess. See Appendix 01 to see the questions
and the results identified. The authors followed five phases, starting off with an in-depth research

6
that helped access a deep understanding of Meril. J. Fernando’s leadership characteristics, and his
impact to his organization and followers. In phase two the authors generated a list of codes or
characteristics of Meril. J. Fernando that appears significant to the research questions and access.
The authors then identified themes within the list of codes generated through the data collected,
which helped understand how certain codes related together to create a theme. Then, the themes
were polished and analyzed in phase four. Finally, in phase five the authors titled and defined the
themes after identifying the story each theme conveyed to broadly relate to the research questions.
Table 1 states the characteristics identified within Meril. J. Fernando during the data analysis
process and how they relate to create a theme.

Table 1 - Themes and Codes

Theme Codes/Characteristics
Spirituality Hope & Faith Endurance, perseverance, do what it
takes, stretch goals and expectation
of reward/victory.
Vision Visionary, reflects high ideals,
encourages hope/faith and establishes
a standard of excellence.
Altruistic Love Forgiveness, Kindness, Integrity,
Empathy, Compassion, Honesty,
Patience, Courage, Trust/loyalty and
Humility.
Higher Internal Locus of High Self Assurance
Control Hard Work
Spiritual and Caring

The figure 4 is a causal model of spiritual leadership developed by Fry, L (2003) to portray the
need for a spiritual leadership. This modal has been applied to how Meril. J. Fernando’s leadership
characteristics have continued to transform the success of the growing and learning organization
that is Dilmah.

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 Figure 4 - Theme 1: Spirituality

It can be deduced that Meril. J. Fernando’s spiritual leadership has intrinsically motivated and
positively impacted the fundamental need for him and his follower’s need to possess the need for
a spiritual survival. Meril. J. Fernando has created a vision within his organization and created a
sense of calling in life, where they find meaning in working hard towards his vision to make a
difference. Thereby, creating strong commitment towards the organization's output. Altruistic love
being one of Meril. J. Fernando’s greatest characteristics has created a social/organizational culture
within the organization, where he as a leader and his followers care for each other genuinely,
understood and appreciated evoking a feeling of “family” or membership.

The second theme identified within Meril. J. Fernando’s leadership characteristics is his high
internal locus of control.

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 Figure 5 - Theme 2: Internal Locus of Control

As shown in figure 4, it is observed through data analysis that Meril. J. Fernando’s high internal
locus of control is driven by three main characteristics; high self-assurance, hard work, and his
spiritual and caring nature. Meril. J. Fernando is a very spiritual businessman, and spirituality, to
him, is the “inner well-being” as stated in one of his interviews with the Harvard University that
(Hbs.edu, 2021).

It was easily understood that Meril. J. Fernando grew up in a religious family. He believes
practicing his religion continuously gave him the strength and courage to do what he does even
today with his followers and his organization. It can be noticed mentioned in the Harvard Interview
(Hbs.edu, 2021) that Meril. J. Fernando spoke and represented himself as self-assured and happy,
thereby demonstrating a high internal locus of control. Meril. J. Fernando’s confidence in himself
and his vision led him to work hard to achieve this, he believes strongly that his success is due to
“hard work”.

Based on the data collected and its analysis show that Meril J Fernando’s high internal locus, his
spiritual and caring characteristics towards his followers embody the frameworks of transcendental
leadership as built by Cardona (2000) and Sanders et al. (2003). The three codes are interconnected
and relate to each other strongly.

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6.0 Discussion

Meril. J. Fernando’s Leadership to the Management and Organizations

Meril. J. Fernando’s Leadership to Himself

The value system which Meril. J. Fernando enshrined developed a new form of ethical leadership
style in him and this further assisted him to take the organization to greater heights.

A Broad Visionary: When he went to London he saw how a worthy product in the likes of Ceylon
tea, was being treated poorly by the multinationals. Meril who was a firm believer of fairness
objected to this firmly and going forward, wanted to ensure that the value addition of the industry
is captured by the country of origin. This compelled him to see a new vision for the tea industry
and a new vision for the country, for the people and for the businesses.

High Moral Consciousness: For Meril. J. Fernando business is a matter of human service. Meril.
J. Fernando saw businesses not as an opportunity to make profits but rather as an opportunity to
give back to the society. For him this was opportunity to help the country, its people, the under
privileged estate workers and the environment.

High Philanthropy: For Meril. J. Fernand, philanthropy was one of his key business objectives
rather than a mere marketing driven CSR led campaign aiming for publicity. He was an advocate
of businesses having a social purpose. To this regard he laid the foundation for Meril J foundation
and Dilmah conservations. According to him, he set asides 10% of pretax profits from his
businesses for philanthropy and the weekends are devoted to philanthropic work with his sons.
The most significant aspect of his philanthropy is that Meril. J. Fernando is reluctant to publicize
what he does for charity unless he is in partnership with an international organization for the said
charity work.

Higher Locus of Control: Meril. J. Fernando had strong belief that he could turn the tea industry
upside down like never before through delivering single origin tea and value-added tea.

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Extreme Passion: Meril’s passion for tea is to such a level, that he is known as the CEO who
makes his own tea. He named his brand Dilmah, after his two sons, shows how much of a personal
matter tea is to him.

Meril. J. Fernando’s Leadership to the Organization

Table 2 - Meril. J. Fernando’s Leadership to the Organization

Activities based on Leadership attributes Description

Bringing Ethics to Tea Industry; Quality
and Authenticity:
Meril focused on delivering pure garden-fresh
Ceylon tea to the consumers as quickly as
possible, the health benefits of which can be
reaped only if it is consumed fresh. To this
regard he set up the first integrated supply
chain for tea in Sri Lanka, and maintained the
highest quality standards throughout the
supply chain from sourcing up to the finished
product. He also brought authenticity to the tea
industry by delivering single origin Ceylon tea
to the consumers which is what they were
willing to pay for from the outset.

Integrity in communication:
Meril. J. Fernando’s developed a culture where
honesty and integrity was maintained in every
contact with customers, partners and retailers.
Together with his sons he shared a simple story
openly on television and print media endorsing
his product which was built around passion
and integrity.

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Strong emphasis on Staff Welfare:
Meril. J. Fernando was always keen on taking
care and helping his employees and to this
regard provided free in‐house staff medical
facilities and financial help for the education of
employees' children. It is said that for 30 years
he had provided the children of his clerical
staff with all the necessary school textbooks at
the beginning of the academic year, plus three
suits and a pair of shoes.

Direct Communication with the

Employees: Merrill Fernando adopted the “management by
walking around’’ style which gave the
opportunity for the employees for direct
communication. This led to high levels of
employee commitment and motivation, good
internal communications and strong
teamwork.

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7.0 Conclusion

It is not often that a leader of the caliber of Meril J Fernando emerges, but this does not mean
others should not try to implement his characteristics on Sri Lankan brands to help them go global.

When followers realize that the leader genuinely cares about them, and that he/she does not
consider them as just another number, people will follow and show loyalty. Before going global,
you must ground yourself among the people you intend to work with. In today’s world, even
though a lot of organizations engage in charity work, these are merely used as a PR tactic. It is
important to go the extra mile and to be genuine with charity. The spiritual dimension of Meril’s
personality is something that business leaders can work on to be better leaders. There are various
techniques to help them. It should also be noted that leaders in the west are also practicing these
techniques to help them become better leaders, and the techniques they practice mostly originate
from Asia. Don’t just look at customers merely as a source of profit. Genuinely try to help them
by adding value to their life. This is a mantra that Meril J Fernando lived by and should be adopted
by other Sri Lankan business leaders. When one does this, earnings will automatically come
because the customers believe you genuinely want to add value. Meril J Fernando faced countless
obstacles. These came not only from foreigners, but from fellow countrymen as well. But he was
undaunted and forged ahead with his vision, because he genuinely believed in what he was doing.
In the end, he reaped many a reward for his undying belief in himself, especially in the case of
establishing Dilmah in Australia.

This is something that Sri Lankan brands wanting to go global must emulate, because they must
have faith in themselves to overcome the inevitable obstacles that block their path when going
global.

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8.0 Reference List

Antonakis, J., Avolio, B. J. & Sivasubramaniam, N., (2003). Context and leadership: an
examination of the nine-factor full-range leadership theory using the multifactor leadership
questionnaire. The Leadership Quarterly, Volume 14, pp. 261-295.

Bass, B. & Avolio, B., (1997). The Full Range Leadership Development Manual for the
Multifactor Leadership Questionnaire. Redwood City: Mindgarden.

Bass, B. M., 1995. Theory of transformational leadership redux. The Leadership Quarterly, 6(4),
pp. 463-78.

Benscotter, G. M. & Rothwell, W., (2012). The Encyclopedia of Human Resources Management:
Thematic Essays. USA: Pfeiffer.

Burpitt, W., 2009. Exploration versus exploitation: leadership and the paradox of administration.
Journal of Behavioral and Applied Management, 10(2), pp. 227-246.

Daily FT. (2019) Marketing guru Kotler cites Dilmah Tea for authenticity in his latest book.
Available at: http://www.ft.lk/front-page/Marketing-guru-Kotler-cites-Dilmah-Tea-for-
authenticity-in-his-latest-book/44-689479 (Accessed: 15/03/2021).

Dilmah, 2016. CEYLON TEA SERVICES PLCSUSTAINABILITY REPORT 2015/16. [online]

Dilmah. Available at: <https://www.dilmahtea.com/sustainability/pdf/Dilmah-Sustainability-
Report-2016.pdf> [Accessed 26 March 2021].

Dilmah. (2015) Dilmah Founder Merrill J. Fernando honored by FCCISL for a lifetime of
achievement. Available at: https://www.dilmahtea.ca/news-about-dilmah/dilmah-founder-merrill-
j-fernando-honoured-by-fccisl-for-a-lifetime-of-achievement--119--glb.html (Accessed:
16/03/2021).

Dilmah. (2021) A life devoted to tea. Available at: https://www.dilmahtea.com/70-years-of-tea-

inspiration/life-story.html (Accessed: 16/03/2021)

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Dilmah. (2021) Dilmah news. Available at: https://www.dilmah.sg/news-about-
dilmah/protecting-our-country-with-my-family&-39-s-great-love-&-45-tea--256--glb.html
(Accessed: 03/03/2021).

Dilmah. (2021) Vertically integrated tea company. Available at: https://www.dilmah.sg/dilmah-

tea-company/company-details.html (Accessed: 12/03/2021).

Fernando, M J. (2015) ‘Merrill Fernando, Founder and Chairperson, MFJ Group’. By Prof Thomas
D Casserly, Jr. Creating Emerging Markets – Oral History Collection [Video], Baker Library
Historical Collections, Harvard Business School.

Fernando, M., Frederick, B. & Gary, D., (2009). The spiritual dimension in leadership at Dilmah
Tea. Leadership & Organization Development Journal, 30(6), pp. 522-539.

Fry, L., 2003. Toward a theory of spiritual leadership. The Leadership Quarterly, 14(6), pp.693-
727.

Goleman, D., (2000). Leadership that gets Results. Harvard Business Review, 78(2), pp. 78-90.

Greenberg, D. McKone-Sweet, K. and Wilson, J. (2013) Entrepreneurial leaders: Creating

opportunity in an unknowable world, Leader to Leader, 67, pp.56-62.

Hbs.edu. 2021. Merrill J. Fernando - Creating Emerging Markets - Harvard Business School.
[online] Available at: <https://www.hbs.edu/creating-emerging-
markets/interviews/Pages/profile.aspx?profile=mfernando> [Accessed 26 March 2021].

Hofman, D. & Morgeson, F. P., (2004). The Role of Leadership in Safety. Washington: American
Psychological Association.

Howell, J. M. & Avolio, B. J., (1993). Transformational Leadership, transactional leadership, locus
of control, and support for innovation: Key predictors of consolidated business unit performance.
Journal of Applied Psychology, 78(6), pp. 891-903.

Isebor, J., 2018. Transcendental Leadership for the 21st Century: A Narrative Inquiry on Effective
Leadership and Workplace Spirituality. SSRN Electronic Journal,

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Maslow, A., (1954). Motivation and Personality. 2nd ed. New York: harper & Row.

MJF foundation.org. (2016) Merrill J. Fernando honored with FIRST Award for Responsible
Capitalism for improving the lives of underprivileged children and deprived communities.
Available at: https://www.mjffoundation.org/news-events/news/merrill-j-fernando-honoured-
with-first-award-for-responsible-capitalism-for-improving-the-lives-of-underprivileged-children-
and-deprived-communities--290n.html (Accessed: 13/03/2021).

Prentice, W. C., (2004). Understanding Leadership. [Online] Available at:

https://hbr.org/2004/01/understanding-leadership [Accessed 14 January 2021].

Riessman, C. K. (2008). Narrative methods for the human sciences. Los Angeles, CA: SAGE

Sanders, J. E., Hopkins, W. E. & Geroy, G. D., (2003). From transactional to transcendental:
towards an integrated theory of leadership". Journal of Leadership & Organizational Studies, 9(4),
pp. 21-31.

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Appendix

Appendix 01: Thematic Analysis Questionnaire (Isebor, J., 2018): Results Meril J
Fernando

Question Answer
A. What do you feel goes into Meril. J. Fernando is a very spiritual businessman. He believes that
inspiring spirituality in your “all religion teaches the same, we are taught in a different style”.
employees? Spirituality, to Meril. J. Fernando, is the “inner wellbeing”. In his
case, “the Catholic religion, and my feeling for the Buddhist
philosophy is my interpretation of spiritual wellbeing”. He said:
We are a very religious family. I was trained to go to mass every
day, and it gave me a lot of strength and courage in what I did. So
even as a small boy, we had no wants. Religion was the
cornerstone of my foundation and eventually as I grew up, I
became very dedicated to religion.

B. If you were asked to name Strong definition of the destination and Journey as Merrill Wanted
some dimensions of to a have a single origin branded tea from Sri Lanka
spirituality that you try to
inspire in your employees,
what would they be?

A. As a transcendental leader, to ensure that employees understand and be committed to my

how, in general, do you
influence employee
performance/productivity?
organization's vision through taking care of them in terms of
personal needs and family needs that depicts genuine altruistic love
not only to the direct employee families but the communities as
well. This ensures that employees have faith in organizational
leaders and ensure or build trust that the company really cares
about its people.

B. As a transcendental leader, While religious practice has a major influence in his life, he
how do you create believes strongly his success is due to “hard work”. He said, “I
organizational commitment? don’t think I know that any other tea-growing country has had a
person who has achieved this success. Why do I deserve this
success? It is hard work, no doubt, but there are other people who
work harder”. Throughout the interview with Meril. J. Fernando
and subsequent dealings with him, Meril. J. Fernando projected the
image of someone very self-assured and content, projecting a high

17

C. How is altruistic love
developed or practiced in the wealth with others less fortunate as 1/3 of the earnings are
workplace?
D. How is hope and/or faith Meril. J. Fernando’s interactions with his followers demonstrate a
developed or practiced in the social exchange relationship. Cardona gives an example of a social
workplace?
E. How is trust developed or
practiced in the workplace?
internal locus of control: This is the business which I have created,
and I have spent about 16-18 hours a day working. I think I have
had the energy and the vision and very exceptional capabilities. I
have used them very well.
He was faithful and thankful to God for giving him much more
than he deserved. He admitted that he wondered why he had been
blessed with “nice children and very
hardworking people” with the same values as him. Merrill
Fernando’s high internal locus, a strong passion for giving and
caring for his followers and the less fortunate, and his spirituality,
epitomize the concept of transcendental leadership as developed by
Cardona (2000) and Sanders et al. (2003).
Meril believes in the philosophy of sharing profits and his family
allocated to the foundation in Australia.
exchange relationship between boss and subordinate as one of the
bosses concerning herself with the subordinate’s family needs,
“and the subordinate taking greater pains with his work in order to
please his boss [...] an implicit reciprocal undertaking does exist,
based on a certain identification between the two parties”
(Cardona, 2000, p. 202).
He places a strong emphasis on staff welfare. He provides free in-
house staff medical facilities and financial assistance for the
education of their children. Merrill concerns himself with the
wellbeing of his followers, who he treats like members of his
family. For example, for 30 years he provided the children of his
clerical staff with “all the school textbooks at the beginning of the
year, and three suits, and a pair of shoes”. He remarked that he
started this practice when he had 50-60 employees, and still
continued the tradition with 1,000 employees. Merrill elucidated
his generosity towards his staff.
18
G. How is solidarity
developed or practiced in the globe to ensure that his charitable resources actually help people.
workplace?
H. How is spiritual
connectedness developed or
practiced in the workplace?
A. If altruistic love is not
being developed in the
workplace, what do you think
is interfering with developing
altruistic love?
C. If trust is not being
developed in the workplace,
what do you think is?
He went on to relate how he personally visited places around the
The transcendental leader’s genuine interest in his followers: ...
creates, out of reciprocity, a sense of responsibility in the
collaborator which is what we call unity. Unity is much stronger
than alignment, because the follower does not only believe in the
leader but also wants to help him or her (Cardona, 2000, p. 205).
This was evident when Merrill’s employees reciprocated his
concern for their wellbeing by organizing a bodhi puja for him
when he was gravely ill. Bodhi puja is performed by Buddhists on
important religious days, such as the full moon pay. A
contribution-based relationship is based on the contribution that the
work makes to others (Cardona, 2000, p. 202). In this situation,
employees: are motivated not only by the extrinsic and intrinsic
rewards of the partnership, but also by motives that transcend their
self-interest, such as the good of the organization or the people that
work in that organization ... [they] want to work for somebody who
is trustful and worth contributing for. They want to identify with a
cause that is meaningful and makes a difference (Cardona, 2000, p.
203).
Merrill justifies his actions by using key aspects of the
contribution-based exchange relationship: "I have wealth acquired
through the cooperation and the assistance of many other people
who worked with me. I realize and I strongly believe that we come
into this world with nothing and go with nothing. I have added to
this philosophy that the wealth should return to those who helped
us to acquire it while we are still around ... I am giving it back
before I go in tribute and thanks to consumers, workers, and others
who helped me along the way"
Fear In the leader as well as financial and emotional stress. 2. Fear
of Failure that facilitates blaming others for whatever goes on and
engenders micro management and overly controlling employees
kill the altruistic love. Ego leads to profit over people because if
company runs strictly on profit motive it will manipulate its work
force through artificial intelligence or inflated performance.
“lack of optimism and lack of foresight,” often also “lack of seeing
possibilities for a better outcome,” which can damper hope and
faith.
19
D. If civic/social Complete profit motive will compromise or neglect the social and
responsibility is not being civic responsibility that will cause business philosophy will not
developed in the workplace, care about customers and client.
what do you think is
interfering with developing
civic/social responsibility?
E. If solidarity is not being Lack of communication - If people do not know what the leader
developed in the workplace, wants how can they act as a team “You have to have clear,
what do you think is measurable goals. And everybody needs to understand what their
interfering with developing role is in accomplishing those goals.
solidarity?
F. If spiritual connectedness Not wanting or caring to be connected to similarities between
is not being developed in the individuals. If employees have a fear of being perceived as
workplace, what do you think different and being ostracized.
is interfering with developing
spiritual connectedness?
G. If you experience obstacles by embracing them, by infusing religion in work, and by using
but are developing spirituality effective communication.
at the workplace, how did you
or how do you overcome
those obstacles?

20
LEADERSHIP
CHARACTERISTICS
AND THEORIES.
A CASE STUDY ON

Merrill J. Fernando,
Founder of Dilmah

Presented by:

Zahra Habeeb (100022407)

Poornima Gunathilake (100021833)
George Cliff Kennedy (100021825)
Charitha Jayasinghe (100021824)
Sachithra Warusevitane (100021831)
Merrill J. Fernando

TABLE OF CONTENT
01. Introduction

02. Rationale

03. Aim & Research Question

04. Theoretical Approach

05. Analysis

06. Discussion

07. Conclusion
Merrill J. Fernando

INTRODUCTION

Prevailing British attitudes of the time resulted in

Sri Lankans being shut off from important
segments of the industry.

Born on the 6th May,

1930 in Negombo. At 18, joined the tea
Witnessed a system of
industry as a taster,
Schooled at Maris colonial exploitation
one of five Sri
Stella College that treated producing
Lankans to be
(Negombo) and Saint In 1954 he started countries as raw
selected and sent to
Joseph’s College work with AF Jones material suppliers.
London for training
(Colombo) and Co. Ltd.

Fernando, M J (2015)
Merrill J. Fernando
INTRODUCTION
Sparked the dream of starting
his own tea brand and wanted
to bring integrity back into tea.
Pioneered the concept of
single-origin tea.
Heavily involved in charity work, credits
Had to overcome many
his mother for planting the seed of Has two sons; Dilhan
obstacles to get a
charity in him. Established the MJF and Malik - their two
toehold in Australia,
Charitable Foundation, with a names coined together
which turned out to be
significant portion of his personal becomes DILMAH.
extremely successful.
wealth transferred there.
Fernando, M J (2015)
Pioneer of creating
the first Sri Lankan
global brand, even
extending beyond
the tea industry.

Merrill J. Fernando
Founder of Dilmah
Merrill J. Fernando

RATIONALE: Why Merrill J. Fernando?

Founder’s smiling persona is
Believes “Business is a Founder of the only fully
Pivotal role played in the Sri resonated in all products
Matter vertically integrated tea
Lankan tea industry. across all nations with his
of Human Service”. company in the world.
urging tagline “Do try it”.
Founder of MJF Foundation,
improving around 10,000
under privileged people,
annually.

Also, the founder of MJF

conservation, to protect
the biodiversity.
Merrill J. Fernando

RATIONALE: Why Merill J. Fernando?

ACCOMPLISHMENTS

● One of the Most admired leaders by the ICC

Thus far bestowed with major accolades such as;
● Oslo Business for Peace.
● Honored as a Doctor of Science by Massey
● Sri Lankan of the year in 2016.
University in New Zealand.
● Responsible capitalism
● Excellence Award- Hall of Fame by FCCISL
● Awarded the ‘Deshamanya’ title by the former president.
Success of Dilmah addressed by Philip Kotler in
● Recognized as one of “Passionate 2017 “list of Sri
his latest edition as “the founder’s personal
Lankans by Business Today
commitment, [which] have eventually become
the company’s brand DNA”
Merrill J. Fernando

RESEARCH AIM
Meryl Fernando’s leadership has
facilitated the performance of
Dilma on a global scale.
This study aims to describe and
analyze his leadership
characteristics that led to the
success of Dilma as the only
global Sri Lankan brand, using
leadership theories.
Merrill J. Fernando

RESEARCH QUESTIONS
RESEARCH QUESTIONS

? ? ?
What are the leadership How Merrill’s characteristics impact How such characteristics can be
characteristics that can be Dilma’s management, the success of implemented to local firms in
observed within Merrill Fernando? the organization and himself? building Sri Lankan Global Brands?
Merrill J. Fernando

THEORETICAL APPROACH
● Organizational success is dependent on the link
between the leadership qualities.
● The influence of the organizational climate through
the leadership style can impact financial
performance. (Goleman, 2000)
● “Leadership is the accomplishment of a goal through
the direction of human assistants'' (Prentice, 2004)
● Leadership is a system of an individual impact on a
group of people aimed at accomplishing individual
and organizational goals. (Benscotter & Rothwell,
2012)
Studies in the recent past have tried to investigate variables
of what makes a good leader that has led to many
theoretical frameworks.
● Hofman & Morgeson, (2004) lists the leadership
theories as trait theory; behavioral theory;
contingency theory; and power and influence theory.
● Before the 1970’s the leadership theories were
concentrated on trait, behavioral and contingency
theory.
Merrill J. Fernando

THEORETICAL APPROACH
Bass & Avolio, (1997): Full Range Leadership Model depicts aspects of
transformational and transactional leadership that illustrates the
integration of the organizational goals and strategies through the
influence of the leaders' supremacy over subordinates' manners. It
highlights that:
- Transformational leaders are morally advanced
- Transformational leaders are more successful in motivating
their followers to move beyond the “need hierarchy (Maslow,
1954)”.

Antonakis, et al., (2003): highlights that the full range includes highly
avoidant to highly inspirational and idealized, indicating other leadership
constructs.

Sanders, et al., (2003): Highlights the concept of transcendental

leaders that utilize relational leadership concepts while incorporating
Figure 1 - Full Range Leadership Model
elements of personal/trait leadership.
Merrill J. Fernando

THEORETICAL APPROACH

Source :Sanders, et al., (2003)

A :- Relationship between Transactional leadership and Transformational Leadership

B :- Relationship between Transformational leadership and Transcendental Leadership
C :- Relationship between Transactional and transcendental Leadership theory
Merrill J. Fernando

THEORETICAL APPROACH
Fernando, et al., (2009): Highlights that transcendental
leaders can be distinguished from transformational
leaders by motives such as altruistic love, a sense of
wholeness, and well being without desire to manipulate
others.
Sanders, et al., (2003): Argues that not only
communicating and adopting deep moral values, but also
developing concerns for their followers spiritual journey
and divine awareness associated with the highest level of
moral and spiritual development required to be a
transcendental leader.
Based on the concepts by previous researchers it can
be observed that the development and concern of an
employee’s spiritual journey indicates the transition
from counseling and coaching activities to mentoring.
Howell & Avolio, (1993); Burpitt,(2009): Previous
research has indicated strong evidence to support claims
made that transformational leadership style was far more
effective than transactional leadership style.
Merrill J. Fernando

THEORETICAL APPROACH
Sanders, et al., (2003): Traces that the relationship
between transactional, transformational and
transcendental theories of leadership can be defined
along the hierarchical continuum as depicted in
figure 2.

As leaders progress from external to internal locus of

control, from minimum to high level of spirituality
they move from transactional to transformational to
transcendental styles.

Therefore, the more a leader’s locus of control and

higher the spirituality the more effective they deem
to be.

Figure 2: Integration and extension of Transcendental leadership Theory

Source: (Sanders, et al., 2003)
Merrill J. Fernando

THEORETICAL APPROACH

METHODOLOGY
The research philosophy is positivism with an inductive approach administering a qualitative case study basis.

DATA COLLECTION
Information gathering of Meril. J. Fernando will be gathered through secondary sources that include content from
previous interviews conducted that are published in accepted academic journals and review papers using thematic
analysis.
Merrill J. Fernando

DATA ANALYSIS

Based on thematic analysis developed by Riessman (2008). Data analysis for this approach included 5 steps.

1 2 3 4 5
Familiarize with the Generated an initial list Identified themes Reviewing and refining Named and defined the
data, immersing into the of characteristics across the codes listed themes. themes, identifying and
depth and breadth of (codes) of Merrill that in the data set. considering the overall
the content. appears significant to story of the data in
access. relation to the research
questions.
Merrill J. Fernando

DATA ANALYSIS
SPIRITUALITY

PERFORMANCE CALLING
(Vision) Make a difference
Life has a meaning
EFFORT COMMITMENT TO
(Hope & Faith) ORGANIZATION’S VISION
MEMBERSHIP
REWARD Be understood
(Altruistic Love) Be Appreciated

LEADER VALUES, ATTITUDES & BEHAVIOURS FOLLOWERS NEEDS FOR SPIRITUAL SURVIVAL ORGANIZATIONAL OUTCOME

Causal model of spiritual leadership.

(Fry, L., 2003)
Merrill J. Fernando
DATA ANALYSIS
High Self Assurance
Merrill portrayed himself as self-assured
and content, showcasing a high internal
locus of control: He said “This is the
business which I have created, and I have
spent about 16-18 hours a day working. I
think I have had the energy and the vision
and very exceptional capabilities. I have
used them very well.
INTERNAL LOCUS OF CONTROL
Hard Work
He believes strongly his success is due to
“hard work”. While religious practice has a
major influence in his life, he believes
strongly his success is due to “hard work”.
He said, “I don’t think I know that any other
tea-growing country has had a person who
has achieved this success. Why do I
deserve this success? It is hard work, no
doubt, but there are other people who work
harder”.
Spiritual and Caring
Merrill is a very spiritual businessman.
Spirituality, to Merrill, is the “inner
well-being” He said: We are a very religious
family. I was trained to go to mass every
day, and it gave me a lot of strength and
courage in what I did. So even as a small
boy, we had no wants. Religion was the
cornerstone of my foundation and
eventually as I grew up, I became very
dedicated to religion.
Merrill J. Fernando

DISCUSSION
Merrill J. Fernando
DISCUSSION
MERRILL’S LEADERSHIP TO SELF
A Broad Visionary
Merrill’s ability to dream the impossible
made him a broad minded visionary,
who had a unique sense of purpose for
himself, his country, organization and
the people.
Higher Moral Consciousness
Stemming from his moral background,
Merrill always viewed his business as a
matter of human service, which is as an
opportunity to give back.
Higher Locus of Control Higher levels of Philanthropy
MJF had the strong belief that he could turn the tea industry Merrill was an advocate of
upside down like never before through delivering single businesses having it’s social
origin tea and value added tea. His higher self assurance purpose. To this regard he laid the
led him to be described as a leader with higher locus of foundation for the MJF foundation
control, and Dilmah Conservation that
devoted immensely to charity
Extreme Passion work. He further distinguished
Merrill’s passion for tea is to such a level, that he is known charity from meaningful charity,
as the CEO who makes his own tea. He named his brand where you go to the door of the
dilmah, after his two sons, shows how much of a personal poor to help them.
matter tea is to him.
Merrill J. Fernando

DISCUSSION
MERRILL’S LEADERSHIP TO MANAGEMENT AND ORGANIZATION

Efforthighest
Effort to maintain to maintain
Qualityhighest Quality Integrity in communication
Integrity in communication
TheThe focus
focus of Dilmah
of Dilmah was
was on on quality
quality and freshness,
and freshness, which MJF developed a culture where honesty and integrity was
MJF developed a culture where honesty and integrity
clearly
whichdifferentiated it from the competitors.
clearly differentiated Hence efforts
it from the competitors. maintained in every contact with customers, partners and
was maintained in every contact with customers,
were made
Hence to maintain
efforts were highest
made toquality standards
maintain in the
highest whole
quality retailers.Together with his sons he shares his story simply
supply chain, even to the manufacturing process and
partners and retailers.Together with his sons he shares
and openly on television and print media endorsing his
standards in the whole supply chain, even to the
facility.The factory is ISO 9002 and HACCP certified, and has his story
product whichsimply andaround
was built openly on television
passion and print
and integrity.
manufacturing process and facility.The factory is ISO
been admired even by their competitors. media endorsing his product which was built around
9002 and HACCP certified, and has been admired even
passion and integrity.
by their competitors.
Merrill J. Fernando

DISCUSSION
MERRILL’S LEADERSHIP TO MANAGEMENT AND ORGANIZATION

Strong emphasis on Staff Welfare

MJF provides free in‐house staff medical facilities and
Direct Communication with the employees
financial help for the education of employees' children.
Merrill Fernando adopts the ‘‘management by walking
For 30 years he provided the children of his clerical
around’’ style which makes it easy for employees to
staff with all the necessary school textbooks at the
communicate directly with him.This led to high levels of
beginning of the academic year, plus three suits and a
employee commitment and motivation, good internal
pair of shoes. He started this practice when he had
communications and strong teamwork.
around 50 employees and continued the tradition with
1,000
Merrill J. Fernando

Conclusion
How can the same characteristics be implemented on to local firms in building Sri Lankan Global
Brands?

● Be genuine and kind

● Spirituality
● Genuinely want to help the customer
● Never give up
Merrill J. Fernando

Conclusion
Creating the country's first producer-owned brand, one that would offer the finest tea for
consumers whilst providing a better deal to producers. Thus, Dilmah Tea was born.

“I have always believed that the greatest gift is the gift of

giving - in sharing and caring, making our business a human
service. Since the early days, our earnings have been shared
amongst our workers, the differently abled and the wider
community. Our business was established on the principle
that success is a blessing to be shared”.

Fernando, M J (2015)
Thank you!

A CASE STUDY ON

Merrill J. Fernando,
Founder of Dilmah

Presented by:

Zahra Habeeb (100022407)

Poornima Gunathilake (100021833)
George Cliff Kennedy (100021825)
Charitha Jayasinghe (100021824)
Sachithra Warusevitane (100021831)