Human Resource Management

🟢 Lite — Quick Review (1h–1d)

Rapid summary for last-minute revision before your exam.

Human Resource Management — Key Facts for Sri Lanka A/L Examination

HRM Functions:

Function	Description	Sri Lankan Example
Recruitment	Finding suitable candidates	Job fairs at University of Colombo
Selection	Choosing best candidate	Interviews, psychometric tests
Training & Development	Building skills	On-the-job training at garment factories
Performance Appraisal	Assessing performance	Annual performance reviews at banks
Compensation	Wages, benefits, incentives	Cost-to-company packages
Industrial Relations	Managing employer-employee relations	Union negotiations at port, railway

Key Difference: HRM vs. Personnel Management:

Aspect	Personnel Management	HRM
Focus	Administrative	Strategic
Scope	Employee welfare	Employee as asset
Approach	Control	Commitment
Decision	Short-term	Long-term
Relationship	Transactional	Partnership

⚡ A/L Exam Tip: Questions comparing HRM and Personnel Management are very common in A/L. Understand the philosophical shift from treating employees as costs to treating them as strategic assets!

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🟡 Standard — Regular Study (2d–2mo)

Standard content for students with a few days to months.

Human Resource Management — Detailed Study Guide

Job Analysis and Design

Job Analysis Components:

Component	Description	Question it answers
Job Description	What the job involves	What does the worker do?
Job Specification	What qualities needed	What skills/qualifications required?
Job Evaluation	Comparing job worth	How valuable is this job to the organisation?

Job Description Contents:

• Job title and code
• Main purpose of the job
• Duties and responsibilities
• Reporting relationships
• Working conditions
• Equipment used

Job Specification Contents:

• Educational qualifications
• Experience required
• Skills needed (technical, interpersonal)
• Personal attributes required
• Certifications/licenses

Example - Sri Lankan Job Description:

Job Title: Tea Estate Supervisor
Location: Plantations in Nuwara Eliya district
Reports to: Factory Manager
Main Purpose: To oversee plucking teams and ensure quality leaf collection

Duties:
- Manage 30-50 pluckers
- Monitor plucking quality and productivity
- Ensure safety compliance
- Report daily outputs

Working Conditions: Outdoor, hilly terrain, all weather
Equipment: Weighing scales, collection bags, mobile phone

Job Specification:
- Minimum: GCE A/L in any stream
- Experience: 2+ years in tea plantations
- Skills: Leadership, communication (Tamil, Sinhala)
- Physical fitness for outdoor work

Job Design Approaches:

Approach	Description	Sri Lankan Context
Job Rotation	Moving between different jobs	Cross-training in supermarkets
Job Enlargement	Adding more tasks at same level	Multi-tasking in small businesses
Job Enrichment	Adding planning and control duties	Supervisor empowerment
Job Simplification	Breaking work into simple tasks	Assembly line in garment factory

Recruitment and Selection

Recruitment Sources:

Internal Sources:

Method	Description	When to use
Internal advertisement	Posting within organisation	When qualified internal candidate exists
Promotions	Advancing existing employees	To reward loyalty, retain talent
Transfers	Moving between departments	To fill skills gaps
Job bidding	Employee applies for posted position	Formal process, unionised settings

Advantages: Cheaper, faster, boosts morale, known quantity Disadvantages: Limited choice, internal politics, stale thinking

External Sources:

Method	Description	Sri Lankan Example
Job advertisements	Print, online, social media	Jobs in Ceylon, TopJobs.lk
Employment agencies	Private recruiters	Link Recruitment, Human Resource Dimensions
Campus recruitment	Universities, vocational training	SLIIT, University of Moratuwa placement cells
Word of mouth	Employee referrals	Common in SME sector
Direct application	Unsolicited applications	Kept on file for future vacancies
Headhunting	Recruiting for senior positions	Executive search firms, headhunters

Selection Process:

Step-by-Step Process:

Step 1: Screening
        ↓
Step 2: Application form/Resume shortlisting
        ↓
Step 3: Preliminary interview
        ↓
Step 4: Tests (aptitude, personality, skills)
        ↓
Step 5: Final interview (often panel)
        ↓
Step 6: Reference checks
        ↓
Step 7: Medical examination
        ↓
Step 8: Job offer and contract

Selection Interview Types:

Type	Description	Best Use
Structured	Same questions for all candidates	Objective comparison
Unstructured	Informal, conversational	Exploring candidate freely
Behavioural	”Tell me about a time when…”	Predicting future behaviour
Case interview	Solve a business problem	Management trainee selection
Panel interview	Multiple interviewers	Senior positions, reduces bias

Common Selection Tests:

Test	What it measures	Sri Lankan Use
Aptitude test	Numerical, verbal, abstract reasoning	Graduate recruitment
Personality test	Traits, temperament	HR screening
Skills test	Specific job skills	IT, accounting, technical roles
Psychometric test	Cognitive ability, personality	Bank Management Trainees
Medical examination	Physical fitness	Industrial, manual jobs

Training and Development

Training vs. Development:

Aspect	Training	Development
Focus	Current job skills	Future career preparation
Timeframe	Short-term	Long-term
Scope	Specific tasks	Broader capabilities
Purpose	Improve immediate performance	Build potential

Training Methods:

On-the-Job Training (OJT):

Method	Description	Sri Lankan Example
Coaching	One-on-one with experienced worker	Master craftsman teaching apprentice
Mentoring	Guided by senior over longer period	New manager assigned mentor
Job rotation	Moving through different roles	Management trainee rotation across departments
Apprenticeship	Formal long-term training	Ceylon Electricity Board technical apprentices
Internship	Student placement for work experience	University of Colombo business students

Off-the-Job Training:

Method	Description	Sri Lankan Example
Lectures/conferences	Formal classroom delivery	HRDF training programs
Case studies	Analysing business scenarios	Business school case method
Role plays	Simulated workplace situations	Customer service training
Simulation	Artificial work environment	Flight simulator for SriLankan Airlines
E-learning	Online/digital training	LMS platforms for large organisations
Workshops	Interactive group learning	Soft skills workshops by Dialog, Mobitel

Training Needs Analysis:

Three Levels:

1. Organisational Analysis
   - Are there performance gaps?
   - Do we have skills shortages?
   - Changes in environment requiring new skills?

2. Task Analysis
   - What does the job require?
   - What skills/knowledge are needed?
   - What are the performance standards?

3. Person Analysis
   - Who needs training?
   - What specific skills are lacking?
   - Are individuals ready for training?

Evaluating Training Effectiveness (Kirkpatrick Model):

Level	What it measures	How to evaluate
Reaction	Participant satisfaction	Feedback forms
Learning	Knowledge/skill gained	Pre and post tests
Behaviour	On-job application	Manager observation
Results	Business impact	Sales, quality, turnover

Performance Appraisal

Purpose of Performance Appraisal:

1. Feedback to employees on their performance
2. Basis for pay/compensation decisions
3. Identifies training needs
4. Informs promotion decisions
5. Helps set performance goals
6. Legal documentation of performance

Appraisal Methods:

Traditional Methods:

Method	Description	Advantages	Disadvantages
Graphic Rating Scale	Score various factors on scale	Simple, cheap	Subjectivity, halo effect
Ranking Method	Rank employees best to worst	Easy to understand	No absolute measure
Paired Comparison	Compare each employee with every other	More accurate ranking	Time-consuming
Critical Incident	Record specific examples of good/poor behaviour	Objective, detailed	Admin heavy
Narrative/Essay	Written description of performance	Rich detail	Inconsistent, subjective

Modern Methods:

Method	Description	Sri Lankan Example
Management by Objectives (MBO)	Objectives set jointly, progress measured	Used by commercial banks
360-Degree Feedback	Feedback from all around (subordinates, peers, managers, customers)	Multinational companies
Balanced Scorecard	Performance across multiple dimensions	Large listed companies
Key Performance Indicators (KPIs)	Quantifiable measures for each role	Telecom companies, BPO

MBO Process:

Step 1: Set organisational goals
Step 2: Set individual objectives (linked to organisational)
Step 3: Monitor and measure performance
Step 4: Evaluate results
Step 5: Corrective action and review
Step 6: Feed back and start new cycle

Who Should Appraise?:

Source	What they see	Potential bias
Immediate supervisor	Day-to-day work	Relationship, recency bias
Peers	Teamwork, collaboration	Internal politics
Subordinates	Leadership, management style	Resentment, revenge
Self-appraisal	Own perspective	Over/under estimation
Customers/clients	External service quality	Limited sample

⚡ A/L Key: The best approach is often 360-degree feedback (multiple sources), but this is resource-intensive. In Sri Lanka, the immediate supervisor appraisal remains most common.

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🔴 Extended — Deep Study (3mo+)

Comprehensive coverage for students on a longer study timeline.

Human Resource Management — Complete Notes for A/L Sri Lanka

Employee Compensation and Benefits

Components of Compensation:

Total Compensation Package:
├── Direct Pay (Cash)
│   ├── Basic Wage/Salary
│   ├── Allowances (housing, transport, cost of living)
│   ├── Overtime payments
│   └── Bonuses and incentives
│
├── Indirect Pay (Benefits)
│   ├── Provident Fund/EPF contributions
│   ├── Gratuity
│   ├── Health insurance
│   ├── Meal allowances
│   └── Other benefits
│
└── Non-Monetary Benefits
    ├── Training and development opportunities
    ├── Career advancement
    └── Work environment, flexible hours

Sri Lanka’s Mandatory Benefits:

Benefit	Legal Basis	Requirement
EPF (Employees’ Provident Fund)	EPF Act	12% of wages from employer + 8% from employee
ETF (Employees’ Trust Fund)	ETF Act	3% of wages from employer
Gratuity	Shop Offices Act / Termination of Service	1/2 month salary per year of service
Overtime	Shop Offices Act	1.5× normal rate for hours beyond 8/day, 45/week
Maternity Leave	Maternity Leave Act	84 days paid leave
No overtime for pregnant women	Shop Offices Act	Protected category

Incentive Schemes:

Individual Incentives:

Scheme	Description	Sri Lankan Example
Piece work	Pay per unit produced	Garment factory workers (per dozen shirts)
Commission	% of sales value	Real estate agents, insurance
Bonus	Performance-based cash payment	Year-end bonus at banks
Profit sharing	Share in company profits	Some listed company schemes

Group Incentives:

Scheme	Description	Example
Team bonus	Shared among group	Production team meeting targets
Gain sharing	Sharing productivity gains	Savings shared between company and workers
Employee Share Ownership	Shares in company	ESOPS at listed companies

Sri Lankan Wage Structure Considerations:

• National Minimum Wage (set by Department of Labour)
• Gratuity calculations (especially relevant at resignation/retirement)
• Allowances structure (COLA - Cost of Living Allowance)
• Sector-specific wages (garment, tea, ports, BOI enterprises)

Industrial Relations in Sri Lanka

Key Stakeholders:

Party	Role	Sri Lankan Examples
Employers	Those who hire workers	Employers’ Federation of Ceylon (EFC)
Employees	Those who work	Ceylon Workers’ Congress, Jathika Sevaka Sangamaya
Government	Regulator and sometimes employer	Ministry of Labour, Department of Labour

Trade Unions in Sri Lanka:

Union	Sector	Notable Actions
Ceylon Workers’ Congress (CWC)	Tea plantation	Bargained for wage increases, estate minimum wage
Jathika Sevaka Sangamaya (JSS)	Government sector	Multiple general strikes
Democratic Workers Congress	Free trade zones	FTZ workers, protests for benefits
Ceylon Mercantile Union	Private sector	Bank sector organised labour

Collective Bargaining:

Process:
1. Union presents demands
2. Management responds
3. Negotiation (may involve strikes/lockouts as leverage)
4. Agreement reached
5. Collective Agreement signed
6. Agreement implemented
7. Monitor and enforce

Collective Agreement Contents:

Item	Example
Wage rates	15% increase over 3 years
Working hours	8-hour shift, flexible on Sundays
Leave entitlements	Extra 3 days annual leave
Grievance procedures	Written complaint within 14 days
Dispute resolution	Step-by-step escalation
Duration	Agreement valid for 3 years

Dispute Resolution:

Step	Method	Sri Lankan Context
Step 1	Direct negotiation	First attempt between union and management
Step 2	Mediation	Labour Department mediation officer介入
Step 3	Conciliation	More formal third-party involvement
Step 4	Arbitration	Binding or non-binding depending on agreement
Step 5	Adjudication	Labour tribunal/Court of Appeal

Strike Actions in Sri Lanka:

Legal Requirements for Strike:
1. Dispute must be reported to Labour Commissioner
2. 14-day cooling off period required
3. Secret ballot of members
4. Union leadership must approve
5. Notice to employer

Types of Strikes:
- go-slow: Reduced productivity
- Work-to-rule: Following rules strictly, slowing down
- Token strike: Short, symbolic
- Full strike: Complete work stoppage
- Sympathy strike: Supporting another union's dispute

⚡ A/L Exam Tip: The question “Why does Sri Lanka experience frequent strikes?” is a common A/L essay question. Answers should cover: political unionism, poor grievance handling, inflation eroding real wages, ethnic politics, and weak enforcement of agreements.

Human Resource Planning

HR Planning Process:

Step 1: Analyse current HR resources
        - Skills audit
        - Demographic analysis
        - Performance inventory

Step 2: Forecast future HR requirements
        - Business plans
        - Expansion/contraction
        - Technological change

Step 3: Forecast future HR supply
        - Internal supply (existing staff)
        - External supply (labour market)

Step 4: Gap analysis
        - Requirements - Supply = Surplus/Shortage

Step 5: Develop HR plans
        - Recruitment plans
        - Training plans
        - Redundancy plans (if surplus)
        - Attraction plans (if shortage)

Demand Forecasting Techniques:

Technique	Description	When to use
Managerial judgment	Managers estimate future needs	Simple organisations
Ratio analysis	Historical ratios to project	Stable environments
Workload analysis	Based on expected workload	Service industries
Delphi technique	Expert consensus	Complex long-term planning
Regression analysis	Statistical projection	Data-rich environments

Supply Forecasting:

Internal Supply:
- Skills inventory (who has what skills)
- Promotion charts (internal career paths)
- Attrition analysis (who will leave)
- Retirement schedule

External Supply:
- Labour market conditions
- Competition for talent
- Economic conditions
- Educational output of institutions

Managing HR Surplus (Downsizing):

Method	Description	Sri Lankan Context
Voluntary separation	Employees volunteer to leave	Voluntary Retirement Schemes (VRS) offered by banks
Layoffs (temporary)	Temporary not in work	COVID-19 saw many companies use this
Termination	Permanent removal	Used when restructuring
Natural attrition	Not replacing leavers	Reduce headcount gradually
Job sharing	Hours divided between workers	Used in some government offices

Managing HR Shortage:

Method	Description	Sri Lankan Example
Overtime	Existing workers work more hours	Common in construction, garment sectors
Recruitment	Hire new staff	Active hiring campaigns
Training	Upskill existing staff	Cross-training in hospitality
Contractors	Use external workers	Security guard companies, cleaning services
Technology	Automate tasks	ATM replacing bank tellers

Employee Wellbeing and Engagement

Wellbeing Components:

Dimension	Description	Sri Lankan Context
Physical	Health, safety, ergonomics	Occupational Safety and Health (OSH) compliance
Mental	Psychological health, stress management	Rising mental health awareness
Social	Relationships, work-life balance	Importance of family in Sri Lankan culture
Financial	Job security, fair pay, benefits	Inflation impact on financial stress
Career	Development, growth opportunities	Particularly important for millennials

Work-Life Balance in Sri Lanka:

Challenges:
- Long working hours in some sectors (apparel, BPO)
- Traffic congestion eating into personal time
- Cultural expectations of overtime without extra pay
- SME owner expectation of availability beyond work hours

Solutions Employers Can Offer:
- Flexible working hours
- Part-time or job-share options
- Remote working (where possible)
- Parental leave beyond minimum
- Workplace creche facilities

Employee Engagement:

Drivers of Engagement:
1. Recognition and appreciation
2. Career development opportunities
3. Fair compensation
4. Meaningful work
5. Good relationships with manager
6. Work-life balance
7. Organisational integrity and values

Consequences of Low Engagement:
- High turnover (talent leaving)
- Low productivity
- Poor customer service
- Absenteeism
- Disciplinary issues

Employee Turnover Analysis:

Turnover Rate = (Number of leavers / Average number of employees) × 100

Sri Lankan Benchmarks:
- Retail/Hospitality: 20-30% annual turnover (high)
- Banking/Finance: 10-15% annual turnover (moderate)
- Manufacturing: 8-15% annual turnover
- Public sector: 2-5% annual turnover (very low)

Types:
- Voluntary turnover (employee chooses to leave) - problem
- Involuntary turnover (dismissal, redundancy) - managed
- Functional turnover (poor performers leaving) - sometimes beneficial
- Dysfunctional turnover (good performers leaving) - costly problem

Cost of Turnover:

Direct Costs: Recruitment costs, onboarding, training
Indirect Costs: Lost productivity, knowledge loss, morale impact, customer disruption

Estimate for Sri Lanka:
Cost of replacing a worker = 50-200% of annual salary
(for skilled/professional roles at top end)

Example: Replacing a bank officer costing Rs. 1M salary:
- Recruitment: Rs. 100,000
- Training: Rs. 200,000
- Lost productivity during vacancy: Rs. 150,000
- Total: ~Rs. 450,000 (45% of salary)

⚡ A/L Exam Tip: In essay questions, when discussing managing turnover, always separate causes and solutions. Sri Lankan students often lose marks by giving a generic list without connecting specific Sri Lankan contextual factors (inflation, overseas job opportunities, sector-specific issues).

Emerging HR Trends in Sri Lanka

Key Trends:

Trend	Description	Sri Lankan Adoption
Digitisation	HRIS, online payroll, e-recruitment	Large companies adopt, SME lags
Gig economy	Temporary/freelance workers	Growing in IT, delivery, creative sectors
Remote work	Working from home	COVID accelerated, now normalised
Skills-based hiring	Focus on skills over degrees	IT and BPO sector leading
Wellbeing focus	Mental health, holistic wellbeing	Growing awareness post-COVID
Diversity & Inclusion	Gender, disability, multicultural	Still developing, especially outside Colombo

HR Challenges in Sri Lanka:

1. Brain Drain: Best talent leaving for overseas (Gulf, UK, Australia)
2. Skills Gap: University graduates lacking workplace skills
3. Informal Employment: Large informal sector, no HR protection
4. Political Interference: Unions with political affiliations affecting negotiations
5. Aging workforce: Some sectors facing retirement of experienced workers
6. Compliance: Multiple overlapping labour laws create complexity

⚡ A/L Key: A comprehensive HRM answer for Sri Lanka should always consider the specific context — labour laws, union dynamics, brain drain, cultural factors — not just generic textbook theory.

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