Friday, December 4, 2020

HUMAN RESOURCE MANAGEMENT PRACTICES IN PRIVATE SECTOR ORGANIZATIONS IN SRI LANKA

 

The key elements of a successful workplace diversity programme would include mutually reinforcing human resource practises that support diversity through staffing, work design, training and development, organizational policies that follow fair procedures and management that embraces the practices and policies of the program and compensation. (Richard and Johnson 2001). Current competitive environment, every organization has to change its internal environment according to external environment changes. To perform as successfully in such a turbulent environment competitively, Organizations need resources such as capital, methodology, material, machine, men and management information system. Also, resources should be used in a very effective way to achieve strategic objectives. (Gamage and Imbulana 2013). Serasingha and Opatha (2007) explained, the economic development of Sri Lanka heavily depends on the success and progress of organizations including listed firms. Human resource management is one of the most important functional fields of organizational management.

Video 1.0. Human Resource Management in Organizations



Source. Gregg Learning 2018

Video 1.0 explained about benefits of Human resource management,co-competencies and challenges to Human resource Management in organizational level and also how human resource management applies to the organization. Considering the human resource management practices, Serasingha and Opatha (2007) state that following five main practices under Human resource management and figure 1.0 shows an employee satisfaction link.

  • Human Resource Planning ( Recruitment / Selection / Induction / Orientation)
  • Training and Development
  • Performance Evaluation
  • Grievance Handling
  • Discipline Administration 
Figure 1.0, Human Resource Management Practices - Employee Satisfaction Link













Source, Sri Lankan Journal of Human Resource Management (2007)

Ijigu (2015) states that Human resource practice like recruitment, selection, induction and orientation, training and development, performance appraisals and compensation management is positively related to employee job satisfaction. Wickramasinghe (2007) suggest that the companies move away from the internal labour market and prefer to recruit from the external labour market. This has implications for practice as internal recruitment not only motivate current employees to perform better and increase their commitment towards the organization but may also help to create a flexible/mobile internal labour market whose job security could be improved through upward or lateral career opportunities. Thus, a greater preference for external labour market may not represent a deliberate, organization-wide, strategic selection strategy. Serasinghe & Opatha (2007). noted that, A Nestle very large multinational company operating closely in hundred countries worldwide and in Sri Lanka too. In Sri Lanka, the employee strength of that company is less than 500 but comparatively the Human Resources management practices are at an acceptable level. Similarly, if Coca Cola Company in Sri Lanka is taken it has less than 500 employees but its systematic use of Human Resource Management practices is high. When looking at large firms operating in Sri Lanka such as Uni-Leaver, Hayley’s, there are comparatively good Human Resources Management practices.

Singer Finance Lanka Plc (2018/2019) states that in Human Resource strategies “Finding the right fit to the right job, continuous human capital development and creating a healthy work environment that encourages a healthy work-life balance are our strategic HR goals. Currently, we are in the process of securing a Human Resource Information System (HRIS) and a Performance Management Framework and putting in place a process for measuring Key Performance Indicators (KPIs) this programme was initiated by the ultimate parent company. Considering the company new management, the Company has streamlined the recruitment process by introducing a recruitment tracker and conducted interviews for over 500 candidates, absorbing 46% into the carder as a result. We also began maintaining a CV bank to strengthen the pool of sources in generating interview candidates”.  

   

Considering the Singer, Sri Lanka Plc continued to have excellent industrial relations and continued its engagement activities and events for employees as well as their families. The Group continued the development and training for its staff as well as for our partners and their staff. Development of the retail channel continues with a focus on enhanced merchandising and displays, overall shop administration, and staff training and development to serve our customers better. Induction and orientation are important and useful for our employees to have a macro picture of Singer’s operations. The formal induction and visits to the retail outlets of the Company’s channels of distribution offer a broad overview of the whole business upon joining. As a large household retailer, the service provider of 430,000 customers and well-diversified social responsible Company, conducting various categories of training programmes for several levels of employees to serve better to internal and external customers. Also, Singer retail academy aims to develop company employees in field activities, providing five diploma programmes. These aspects constitute the modules of the programmes, culminating in 164 modules being conducted under these diplomas that have benefited over 2,700 employees. All employees of the Group undergo performance appraisals except interns, trainees, and temporary employees. The process facilitates career management, mapping development paths, and enhancing the effectiveness and motivation of our employees. It helps to achieve better results, manage employees effectively, and identify the training needs of individuals.      

Company has introduced the ORACAL HRIS system in 2019 and is designed to support the planning, administration, decision-making, and control of human resources management. Candidate Applications such as employee selection and placement, payroll, pension and benefits management, intake and training projections, career pathing, equity monitoring, and productivity evaluation are supported by this information system.

References

Annual Report (2017/2018). Singer (Sri Lanka) Plc

Annual Report (2018/2019). Singer (Sri Lanka) Plc

Annual Report (2018/2019). Singer Finance Lanka Plc

Richard, O.C. and Johnson, N.B. (2001), “Understanding the impact of human resource diversity practices on firm performance”, Journal of Managerial Issues, Vol. 13 No. 2, pp. 177-96.

Gamage, P. Ambulant, L. (2013). Tanning and Development and Performance of Employees, Evidence from Sri Lanka Telecom, International Journal of Marketing, Financial Service and Management Research 02.

Ambulant. (2007). Human Resource Management Practices in listed Firms in Sri Lanka, Sri Lankan Journal of Human Resource Management 01.

Ijigu, A.W. (2015). The Effect of Selected Human Resource Management Practices on Employees’ Job Satisfaction in Ethiopian Public Banks. Emerging Markets Journal, 5(1), pp. 1–16.

Wickramasinghe, V. (2007). Staffing practices in the private sector in Sri Lanka. Career Development International, 12(2&3), 108-128. 

14 comments:

  1. Bartel (2004) stated that, Human Resource Management environment can be even more important in determining the productivity in service sector such as banks and finance companies than in manufacturing sector.

    ReplyDelete
    Replies
    1. Huang (1999) has identified in his study that companies which closely coordinate with good HRM practices achieve better performance than companies do not. Schuler and Jackson (1997)
      note that businesses require employees to possess specific skills, knowledge, and abilities needed to implement their competitive strategies and the development of the desired behavior and abilities depends on the design and implementation of specific HRM methods. Firms adopting an innovation strategy must be prepared to adapt to rapid market change and
      technological progress. Their employees need to be creative; to be cooperative with each other; to be able to pursue long-term objectives; to devote proper consideration to the quality and the quantity of products and services provided; to be
      able to take risk; and to cope successfully with ambiguity and uncertainty.

      Delete
  2. The success of banks largely depends on the intellectual development of the employees. Along with intellectual development of the knowledge worker, technical infrastructures of the bank must be ensured to enhance the effectiveness of the employee and the bank (Hossain, 2014)

    ReplyDelete
    Replies
    1. In any organization, employees are considered the essential strategic asset. Therefore,employees could be a competitive advantage if their organization provides more attention and invest in developing employees’ skills at the workplace (Danish and Usman, 2010; Zaharie and Ossian, 2013). A number of researchers have reported that HR practices are positively linked with organizational and employee performance.

      Delete
  3. Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization's most valuable asset,quality employees and same ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses(Casio, 2015).

    ReplyDelete
    Replies
    1. Training is one of main HR activities in the organization and helps the firm to achieve its goals. According to Grossman and Salas (2011), training is an organized task of information, skills, and attitudes lead to enhancing performance in a particular situation. Hence, next step follows recruitment and selection is training and development of employees. This process should involve the new recruited and existed employees. However, careful selection of employees does not guarantee that the new staff will perform the tasks effectively, thus, firms should design and implement proper training programs for those employees in order to achieve the tasks assigned to
      them (Dessler, 2009). Training and development are designed to improve employee performance, competency level and ultimately leads to foster organizational performance. In addition, training refers to a systematic approach to learning and development to improve individual, team, and
      organizational effectiveness (Goldstein and Ford, 2002).

      Delete
  4. Accrording to Snell and Bohlander ( 2007 ) , there are several competitive challenges emerged during past decade are going global ( many companies are seeking business opportunities in global market due to globalization) , embracing new technology, managing change, managing talent or human capital, responding to the market and containing costs .

    ReplyDelete
    Replies
    1. Shiyani (2020) noted that ,many companies are seeking business opportunities in global markets to grow and prosper as domestic markets are shrinking. Globalization is the trend towards opening up foreign markets to international business and investment. The impact of globalization on business and HRM is enormous. Considering the impact of Globalization on HRM,
      a) HR managers have to balance a complicated set of issues related to different geographies, cultures, employment laws and business practices.

      b)HR managers find it difficult to gauge the knowledge and skills of foreign worker and how to train them.

      c)The different languages and cultures of foreigners make things more complicated.

      d)It is a real challenge to relocate managers and workers.

      e)Training managers on foreign cultures and procedures before they take up foreign assignments is time-consuming.

      Delete
  5. Human resource management can be conceptualized as a response by management to the involvement of internal and external forces. The human factor in the workplace can be considered to be controlled more directly by the manager than any other resource. On the other hand, the competitive advantage of small companies is determined by the company's human resource management (Chang, 2013).

    ReplyDelete
    Replies
    1. Huang (1999) has identified in his study that companies which closely coordinate with good HRM practices achieve better performance than companies do not. Schuler and Jackson (1997)
      note that businesses require employees to possess specific skills, knowledge, and abilities needed to implement their competitive strategies and the development of the desired behavior and abilities depends on the design and implementation of specific HRM methods. Firms adopting an innovation strategy must be prepared to adapt to rapid market change and technological progress. Their employees need to be creative; to be cooperative with each other; to be able to pursue long-term objectives; to devote proper consideration to the quality and the quantity of products and services provided; to be able to take risk; and to cope successfully with ambiguity and uncertainty.

      Delete
  6. Organizational objectives are effectively met only when HR practices are being planned and implemented effectively based on company needs. Strategic HRM is a major focus of HRM function which is all about integration and adaptation which ensures that HR practices are aligned with organizational requirements and everyone's practicing them (Boxall et al, 2003).

    ReplyDelete
    Replies
    1. Strategic Human Resource Management is a combination of Strategy and Human Resource Management (HRM). According to Storey (1995), HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

      Delete
  7. With the current pandemic situation over the globe, all companies have rapidly changed in all aspects of their business. Based on a survey conducted by PWC on CEO’s around the globe, 2 key themes have emerged. First being many CEO’s plan to make the companies more digital and virtual and plan to develop a more flexible and employee-oriented workforce (Sethi, Rivera & Amitrano, 2020). With this being the case, HR divisions will have to re-think their strategy to meet these objectives.

    ReplyDelete
    Replies
    1. The sudden shift in work culture has brought new challenges for HR. The top priority for HR professionals is now crisis response and how to keep the employees engaged, provide the right communication channels and tools for remote work, and more. Following are the main HR challenges.
      a) Mental Health and Wellbeing
      b) Managing Remote Work
      c) More emphasis on data
      d) Taking an outside-in approach

      There’s a lot more to Strategic Human Resource Management than meets the eye. Not only should HR align its practices with the business strategy, to be truly strategic, HR needs to understand where the strategy comes from and connect with the various stakeholders that strategy is made for.(Vulpen 2020)

      Delete

HUMAN RESOURCE MANAGEMENT PRACTICES IN PRIVATE SECTOR ORGANIZATIONS IN SRI LANKA

  The key elements of a successful workplace diversity programme would include mutually reinforcing human resource practises that support di...