Redefining HRM in Sri Lanka : Shaping the Workforce Dynamics

Introduction In Sri Lanka's competitive labor market, firms have a unique challenge: acquiring and keeping top talent. With a growing need for skilled employees in IT, finance, healthcare, and manufacturing, businesses are fighting to distinguish themselves as top employers. To stand out, firms must develop a compelling Employee Value Proposition (EVP) that connects with their employees. An effective EVP outlines what employees can expect from an organization in terms of rewards, career development, work culture, and values, which in turn influences their decision to join and stay with the company Figure 1 Understanding Employee Value Proposition (EVP) Figure 2 Source:  https://www.qualtrics.com/ An Employee Value Proposition (EVP) is the distinct collection of products, rewards, and advantages that a company offers its staff in exchange for their skills, expertise, and dedication. EVP is vital for attracting, motivating, and keeping talent by establishing a distinct and appeal...

Introduction As Sri Lanka’s economy undergoes rapid transformation with the rise of new technologies, industries, and business models, the demand for a skilled and adaptable workforce has never been higher. In this setting, Competency HR Theory offers a framework for identifying and developing the unique skills, knowledge, and behaviors necessary for success in new jobs. Competency models are critical for future-proofing personnel, ensuring that individuals possess the skills required to prosper in dynamically changing circumstances.   Figure 1 Understanding Competency HR Theory Competency HR Theory highlights the link between human resource strategies and the specific skills, behaviors, and knowledge required for effective job performance. Competencies are the fundamental attributes that enable individuals to perform well in a position, and they range from technical abilities to soft skills like leadership, communication, and problem-solving. Competency models are simply a...

Introduction In an increasingly globalized world, Sri Lankan enterprises must deal with a quickly changing workforce that is diverse in terms of culture, demographics, and age. While many Sri Lankan enterprises have traditionally used HR methods suited to local settings, the growth of multinational corporations and the need to recruit global talent have underlined the need of universal HR practices. Universalistic Theory proposes that some HR practices have a universally good influence on organizational performance, independent of the unique situation. . Figure 1 Insight into Universalistic HR Practices Universalistic Theory, developed by scientists Jeffery Pfeffer (1998), contends that some human resource strategies, such as selective staffing, training and development, and performance-based rewards, are universally advantageous to organizational success. This idea holds that an organization's performance is determined not only by unique contextual circumstances, but also by...

Introduction In today’s globalized business environment, Sri Lankan organizations are increasingly recognizing the need for strategic human resource management (SHRM) to drive sustainable growth. SHRM aims to integrate human resource practices with an organization's long-term goals, promoting a competitive advantage via strategic workforce planning, talent management, and innovation.   ( Peergrowth, 2021) Sri Lankan enterprises have the problem of integrating innovation with traditional cultural norms in their HR procedures. Figure 1 Exploring Strategic Human Resource Management (SHRM) Strategic Human Resource Management (SHRM) is a forward-looking approach to HR that integrates human resource policies and practices with organizational strategy. According to Wright and McMahan (1992), SHRM guarantees that HR operations directly contribute to attaining business objectives, particularly in terms of improving organizational performance, innovation, and competitiveness. SHRM ent...

Introduction As businesses grow, their Human Resource (HR) requirements alter dramatically. Startups, small firms, and major organizations all confront unique obstacles as they go through their organizational lifecycles. In Sri Lanka, where businesses are quickly expanding and adapting to global trends, knowing how human resource practices should change at each step is critical to long-term success. Organizational Lifecycle Theory (OLT) provides useful insights into how firms may modify their HR strategies to meet the unique demands of each stage of growth. Figure 1 Decoding Organizational Lifecycle Theory Organizational lifecycle theory highlights the stages that organizations go through as they grow and evolve. Ichak Adizes proposed the theory in the 1970s, and it has since become extensively accepted by corporations and organizations of all kinds. (Innvocon, 2023) The organizational lifecycle hypothesis specifies five stages that businesses pass through: Figure 2 Source:...

Introduction Upskilling and reskilling the workforce is critical in today's quickly expanding digital economy. As Sri Lanka moves toward a more tech-driven economy, organizations must prioritize investing in their most important asset: human capital. Human Capital Theory (HCT) emphasizes the importance of education, skills, and training in increasing an employee's productivity and value to the company.   Figure 1 Human Capital Theory Human capital theory, first proposed by Becker (1962) and Rosen (1976), argues that individual workers possess a set of skills or talents that may be improved or accumulated via training and education. (Eide & Showalter, 2010) In the context of organizations, this idea proposes that corporations may enhance performance by investing in their employees' knowledge and abilities. This means that providing training programs and professional development opportunities can assist Sri Lankan businesses in the long run by increasing staff pr...

Introduction As Sri Lanka transitions to a more digital environment, businesses have new hurdles in creating trust and sustaining solid employee connections. Implementing socially responsible HR practices is one of the most important strategies for businesses to solve these difficulties. Figure 1 Understanding Institutional Theory Institutional theory, suggests that organizations are influenced by the social and cultural environments in which they operate. These environments influence organizational structures, practices, and behaviors in response to societal expectations, regulatory frameworks, and industry standards. In the context of human resources, institutional theory proposes that firms use HR practices not just to improve performance but also to meet society expectations of fairness, equality, and responsibility. (David, et al., 2019) In Sri Lanka, where traditional values like as respect, fairness, and trust are strongly valued, socially responsible HR practices may cons...