Human Resources Management

HUMAN RESOURSE MANAGEMENT
Edexcel Level 5
Higher National Diploma in Business Human Resource
Management
HUMAN RESOURCE MANAGEMANT
On
Unit 21 HUMAN RESOURCE MANAGEMANT
By
NADEESHA R FERNANDO
Human Resources Management Institute,
#23, Vijaya Kumaratunga Mawatha (Polhengoda Road),
Colombo 5
Sri Lanka
Submitted on
(31/07/2016)
Page
1 of 73
Table of Contents
Introduction..........................03- 03
1.1 Distinguish between personnel management and human resource management04-05
1.2 Access the function of the human resource management in contributing to organizational
purposes06-11
1.3 The role and responsibilities of line managers in human resource management.12-15
1.4 Analyze the impact of the legal and regulatory framework on human resource
management16-26
2.1 Analyze the reasons for human resource planning in organizations..27-30
2.2 Outline the stages involved in planning human resource requirement.31-35
2.3 Compare the requirement and selection process in two organizations...36-38
2.4 evaluate the effectiveness of the recruitment and selection techniques in
two organizations.39-40
3.1 Assess the link between motivational theory and reward41-46
3.2 Evaluate the process of Job evaluation and other factors determining pay.47-49
3.3Assess the effectiveness of reward systems in different context50-51
3.4 Examine the methods organizations use to monitor employee performance ..52-53
4.1Identify the reasons for cessation of employment with an organizations.54-54
4.2 Discribe the employment exit procedures used by two organizations ..55-59
4.3 Consuider the impact of the legal and regulatory framework on employment cessation
arrangements60-64
Conclusion...............................65-65
References................................66-67
Page
2 of 73
INTRODUCTION
At present it is beyond question that, Human Resource Management is the precondition for the
ultimate success of business organization. The necessity of Human Resource Management is
undeniable for profit as well as nonprofit organization as it includes job analysis, planning
employee needs, recruitment, training, managing wages and salaries, employee performance
evaluation, communication with employees, settlement of organizational disputes, leadership
etc. There have many theories and practices related to Human Resource Management since its
development. Most of the Organizations have their own HRM department to facilitate
management practice towards achieving organizational goals.
HR also makes a good relation with collective bargaining agreement (CBA) and other labour
unions. Human relations movement create HR which creates business value through the
strategic movement of the employees. At the beginning of HRM, it was only responsible for
benefits and payroll administration works. But later company consolidation, globalization,
technological advancement and research, HR now concentrate on strategic initiatives like talent
management, planning, mergers and acquisitions, succession planning, labour relations,
industrial and diversity and inclusion. A newly setup companies have trained professionals or
non HR personnel, but big companies have well trained and specialized HR professionals for
individual departments. Now there are many institutes or education centres to teach this
profession and most of the organizations arrange training to teach HR to their employees.
All organizations are trying to provide better services and products. For providing better and
better service and products they must have skilled workforce otherwise it is quite impossible to
reach its desire goal. HRM helps to get skilled workforce and trained and operate them in most
effective ways to get the organizations goal.
Human resources are the most valuable and unique assets of an organization. The successful
management of an organization's human resources is an exciting, dynamic and challenging
task, especially at a time when the world has become a global village and economies are in a
state of flux. The scarcity of talented resources and the growing expectations of the modern day
worker have further increased the complexity of the human resource function. Even though
specific human resource functions/activities are the responsibility of the human resource
department, the actual management of human resources is the responsibility of all the
managers
in
an
organization.
It is therefore necessary for all managers to understand and give due importance to the different
human resource policies and activities in the organization. Human Resource Management
outlines the importance of HRM and its different functions in an organization. It examines the
various HR processes that are concerned with attracting, managing, motivating and developing
employees for the benefit of the organization.
Page
3 of 73
1.1 DISTINGUISH BETWEEN PERSONAL MANAGEMENT AND HUMAN

RESOURCE MANAGEMENT.
Definition of HRM
Human Resource Management (HRM) is the function within an organization that focuses on the
recruitment of, management of, and providing direction for the people who work in an
organization.
Personnel management and human resource management is quite similar but there are some
philosophical change. Personnel management mainly related to administrative works like
obeying with employment law, dealing with payroll, and handling related tasks. On contrary,
Human resource is responsible for controlling and managing the workforce which has direct
contribution to the success of an organization. Human resource has more working scope than
personnel management. Human resource management is responsible to develop and
incorporate personal management tasks of the workers to increase the reputation of the
organization. It helps an employee to maximize his efficiency. Personnel management includes
traditional and routine administrative works.
Human resource is proactive, which involves continuous development of policies and functions
to improve an organizations workforces. Personnel management is often considering as a selfregulating function of an organization. On the other hand, HRM is an integral part of whole
company function. Personnel management is the single responsibility of an organizations
personnel development. With human resource, all the managers are working together to reach
the organizations goal and they work on their personnel department. Personnel management
motivate employees regarding bonuses, compensation, simplification of work responsibility and
rewards to improve their performance. On the other hand, HRM hold this performance.
The theory and practice related to Personnel and Human Resource Management:
Byers and Rue (2006 ) agreed that Human Resource Management termed as a system of some
tasks and strategies focusing on managing employees successfully at various level of
organization ensuring the goals of that organization. Personnel Management related to only the
management activities of the employees who are in a particular department in an organization.
The theory and practices of personnel management and human resource management are
almost same.
The areas where organizations use Human Resource Management input are development of
legal management system , development of ethical management system, job analysis and job
design, recruitment and selection, motivation to employees, distributing the benefits of
employees, negotiating with organization labor, termination of employees Career opportunities ,
strategic planning, etc.
Page
4 of 73
It is argued by Muhammad Muar (2012) that the word is becoming uncertain day by day. And
this uncertainty highly causes inefficiency for much business organization particularly small and
medium organization (SME) in the global business market. Human Resource Management is
also greatly important of small and medium enterprise .Management is getting attention to small
and medium enterprise in recent time. It was ignored by many HR researchers to do the
research in this field. But the demand of globalization is the fully concentration to each field.
Page
5 of 73
1.2 ACESS THE FUNCTION OF THE HUMAN RESOURCE

MANAGEMENT IN CONTRIBUTING TO ORGANISATIONAL PURPOSE
The major five functions of Human Resource Management are recruitment,motivation, planning,
implementing HR policies and establishing fair work culture (buzzle, 2012).
The Human Resource Management functions starts with recruiting. The primary steps of
recruitment includes advertisement, job fair etc. Recruitment carries greater responsibility as it is
a selection criterion from a large pool of applicants.
Evaluation is an important factor for
recruitment function. Evaluation may be on
the basis of applicants educational
background, talent, character traits etc. In
many countries of the world selection
process includes written exam and viva
voce for checking the eligibility of
candidates. Appropriate selection of
employee helps organization to achieve its
ultimate success. So it can be said that
organizational success of failure or level of
success or failure highly depends on
recruitment.
The next step of recruitment is motivation.
It is very essential go get employees
motivated to any organizations vision. Top
level managers should design the job and responsibility of employees in such way that
employee may think the organizational goal as their own goals. Equity, bonus, increment ,
award , complementary vacation and flexibility in working hours are the main tools of motivating
Planning growth concern with exploring and ensuring the utilization of optimum ability of
employees so that organization can ensure organizational efficiency and effectiveness. It also
indicates that employees must be motivated towards more proactively when it will be needed to
increase the output.
Implementing Human Resource Policy is concerned with the safety and welfare of employees .
Day to day cheek of work spaces , materials , equipment are the key terms related to Human
Resource Management s implementing HR policies. By dint of this type of treatment to
employees , employees can think the organization as their own one. And this type of
implementing policy can facilitate the organizational goal at a large extent.
Page
6 of 73
Establishing fair work culture mostly deals with settlement of dispute and diversity in a good
manner. It is to be conformed that discrimination, by no means , can exist in the organization.
Each and every person should have the knowledge about the anti-discrimination policies.
Human Resource Management functions have a variety of activities e.g. deciding staffing
needs, recruiting and training the employees, ensuring they are high performers and also
dealing with performance issues. Human Resource management is based on the well-organized
utilization of employees in achieving two major objectives within an organization. The first
objective is to effectively make use of the talents and abilities of the employees to get the
operational objectives that are the key plan of the organization. Along with understanding the
objectives of the organization, Human Resource management also look to make sure that the
individual employee is satisfied with the working environment, the reward and benefits that they
receives.
"Human Resource can be described as the organizational function accountable for obtaining
and maintaining qualified employees. In today's complex environment, fulfilling that mission is a
major contributor to an organization success". (American Management Association.2000)
Human Resource department of ScottishPower is responsible for Employee Relations,
Recruitment, Staffing, Training and Development, Rewards, Pensions, Facilities, Fleet, Security
and Health & Safety.
"Our people are at the heart of our success". (Nick Horler, ScottishPower CEO)
"ScottishPower is all about people. In Human Resources, we are responsible for attracting,
recruiting, developing, supporting and looking after the welfare of all of our 10,000 people".
(Duncan, 2009)
People are one of the main resources used by organization. ScottishPower recognizes, that it is
'powered by people'. HRM is concerned by organizing and looking after people in the work
place. On a day by day basis this includes recruitment, training, selection and improvement and
assessment of staff performance. An important element of Human Resource Management is
workforce arrangement. This is putting the right people in the right place at the right time. It also
involves recognizing how many people needed to enable the business to drive at full efficiency.
These people are required to have the right capability to do the job. Development boosts the
skills of the existing workforce. The energy industry is changing fast which means it is very
important to recruit and train people with the right skill to carry out new jobs. This is mostly
important in the increasing renewable energy industry.
Page
7 of 73
Three Basic Functions of Human Resource Management

Recruitment and Selection
"Having the right people, in the right place, at the right time, is critical to organizational
performance. Recruitment is an important activity, not just for the Human Resource team but
also for line managers who are increasingly involved in the selection process". (CIPD, 2009)
Recruitment Process
Vacancy
The business of replacing or recruiting someone is an opportunity to rethink that what content of
the job is/are required and also need to invest time in gathering information about nature of the
vacancy. It is very important to consider the skills, experience and personal values required to
carry out the role effectively.
Job Description
Job descriptions are written statement that describe the responsibilities, duties, contribution and
outcomes needed from a position and also required qualifications & experience of applicants for
a particular job.
Person Specification
Person specification explains the requirements a job holder needs to be able to carry out the job
effectively. These are most likely to include qualifications, training, experience and also personal
qualities.
Job Advertisement
Job advertisement is a way to attract candidates for a particular job according by organisations.
Advertisement of the job explains and defines the job description and requirements to job
specification.
Managing Application
Mostly two main resources in which applications are received e.g. CV or application form. It's
possible that these applications can be submitted on paper or electronically and also required
that all applications should be treated confidentially. In the current recruitment process different
companies adopt various ways to assess the application. Most likely the company web portal
will direct the applicants to formal application form containing different competency based
question. Moreover these forms help to extract the most desirable information from the
employees.
Selecting candidate (short listing)
Page
8 of 73
Selecting and short-listing candidates is a very important part of recruitment process. Though
time consuming it is worth conducting it with care and consideration. Short-listing provide
guidance so that brilliant candidate according to job specification will not miss out.
Interviews
Normally interview has been the main key of assessing the suitability of candidates for a job.
Mostly organizations use interview at the some stage in their selection process. Interviews are
helpful for assessing such as personal characteristics as practical intelligence, communication
and interpersonal skills.
Joining the organization
In this last stage of the recruitment process all applications are assess and finally select one
candidate for the position. Well planned induction permits a new worker to become fully
operational quickly and should be incorporated into recruitment process.
Recruitment into ScottishPower takes place at different levels. Two of the mostly important of
these are at the Modern Apprenticeship Programmes and Graduate Programme. Since the
1990s recruitment activities for bigger organizations frequently takes place online. Also specific
vacancies may be advertised in the local or national newspapers, University appointment
boards, online, job centers and recruitment fairs. The ScottishPower online website presents a
means of detail about the organization and careers. It provides applicants to download job
description and application forms for Apprenticeships Programmes and Graduate Programme.
In both cases applicants have to meet minimum requirements of qualifications and experience.
2. Training and Development

"The right employee training, development and education, at the right time, provides huge payoffs for the employer in better productivity, loyalty, knowledge, and contribution. Learn the move
toward that will guarantee your training carry out a return on your investment" (Susan M
&Heathfield, 2008).
Scottish-Power not only supports and promotes training and education programs to their
employees, but Scottish-Power also encourage providing training to their partners and
contractors, so that they also meet the high quality and safety standards of Scottish-Power.
The organization wants to make sure that people who have the right skills and experience to
performance work at their best now and in future. Scottish Power give them support they need
to grow and get to their potential on a different range of training programmes and some of the
programmes lead to recognised qualifications. In 2008, training budget was of 3.5 million. The
organization runs own training and Development Centres at Glasgow and Merseyside. Here we
give a positive learning environment for all learners and also offer to continue building excellent
development experiences. So, no matter whatever your aims, you will be able to grow, develop
and achieve your potential at ScottishPower.
Page
9 of 73
Scottish-Power coordinates and collaborates with young and underprivileged people from the
society for and provides them education and promotes them for getting education in the field of
Energy Sector. Following are few way through which Scottish-Power provide training to their
employees.
School Based Programmes

Community Based Programmes
Work Based Programmes
Staff Development Community
Administration Objectives
In organization, administration consists of the performance or management operations and the
making or implementing of key decisions. Administration can be defined as the familiar process
of organizing the people & resources economically thus to direct activities toward common goals
and objectives. Administrators, engage in a common set of objectives to meet the organization
goals. These common functions are;
Planning: Planning is usually considered to be one of the four major purposes of management,
along with organizing, coordinating, leading and controlling. Simply planning is identifying where
we want to go, why we want to go there, how we will get there. The planning functions involve
establishing goals, objectives and arranging them in rational order. Administrators also connect
in both short range and long range planning.
Organizing: Organizing involves identifying responsibilities and specifying organizational
relationships. The function is to achieve coordinated effort among all the elements in the
organization.
Staffing: staffing means filling job positions through the right people at the right time and at the
right place. It involves shaping the staff needs, writing job descriptions, recruiting and screening
people to fill the job positions.
Controlling: Controlling the organization is the function that appraises the quality in all areas
and detects potential deviations from the organization plans. This makes sure high quality
performance and satisfactory outcome even as maintaining an orderly and problem free
environment.
Budgeting: Budgeting is a main administration department which produces employee's
salaries,
sickness,
taxation,
leave
etc.
Page
10 of 73
The primary responsibilities of a human resource manager are:

1. To develop a thorough knowledge of corporate culture, plans and policies.
2. To act as an internal change agent and consultant.
3. To initiate change and act as an expert and facilitator.
4. To actively involve himself in companys strategy formulation.
5. To keep communication lines open between the HRD function and individuals and
groups both within and outside the organization.
6. To identify and evolve HRD strategies in consonance with overall business strategy.
7. To facilitate the development of various organizational teams and their working
relationship with other teams and individuals.
8. To try and relate people and work so that the organization objectives are achieved
effectively and efficiently.
9. To diagnose problems and to determine appropriate solution particularly in the human
resources areas.
Page
11 of 73
1.3 Evaluate the role and responsibilities of line managers In Human

Recourse Management
Who are line managers?
Line managers have responsibility for directly managing individual employees or teams. In turn,
they report to a higher level of management on the performance and well-being of the
employees or teams they manage.
The term front-line manager or first-line manager normally refers to those who supervise and
manage employees who themselves have no supervisory responsibilities. Front-line managers
are often promoted from operational roles and might not have any formal management
education at the time of their appointment.
Typically the management responsibilities carried out by line managers (particularly front-line
managers) might include:
day-to-day people management
managing operational costs
providing technical expertise
allocating work and rotas
monitoring work and checking quality
dealing with customers/clients
measuring operational performance
Developing their people.
Line managers play a central role in human resource management. In many organisations, they
are charged with myriad HR-related tasks, such as filling out performance appraisal forms,
interviewing candidates for employment, making salary increase recommendations and
breaking employment-related news good and bad- to employees. This paper investigates how
Page
12 of 73
managers carry out their HR activities. In the literature so far, the prevailing view has been that
managers act primarily on behalf of the organisation, applying HR policy in ways by-and-large
consistent with organisational procedures. My findings from a number of store visits at a leading
UK fashion retailer, give support to a different view: that managers carry out HR activities as
organisational actors who pursue a combination of organisational, departmental and individual
goals. Crucial in my discussion
Line Managers are responsible for:
Ensuring that any staff experiencing performance difficulties are managed appropriately
and working with the employee to identify measures that could be used to improve
performance
Ensuring the staff member has a full understanding of the consequences of not
improving
Setting realistic and measurable standards of performance to include an action plan,

incorporating targets, standards, deadlines and further support.
Setting a reasonable time frame within which improvement is expected.
Setting up a regular progress review meeting during the review period.
Providing reasonable support, adequate supervision and encouragement so all

employees can achieve their objectives
Making clear the areas in which the individuals performance is below expectation
(explaining the grounds/evidence for this view).
Trying to identify any problems or reasons for the underperformance.
By devolving responsibility for HR practices to line managers, organisations will have a closer
relationship between line managers and employees with speedier decision-making and more
effective resolution of workplace problems.
Page
13 of 73
By devolving responsibility for HR issues, line

managers are provided with an opportunity to
engage with day-to-day people management
decision-making, while HR specialists can work
on achieving closer alignment of an
organisations systems and processes with
corporate objectives, while remaining aware to
external environmental changes.
Greater Degrees of Responsibility & Task
Variation, there will be a close Relationships with
Employees.
The skills that I feel line managers need to develop in order to effectively manage people are to
get closer with staff and take time out to talk to them and make them feel valued for their work,
to deal with difficult situations including conflict effectively, providing motivation and to inspire
others. To show full commitment and confidences in the role, which they are given, Take matters
future up instead of leaving them or avoiding them and providing straight feedback. To build
trusts relationship with workers and the organisation. The reasons why I feel these are important
are because I feel not enough action gets taken if employees have problems the problems get
neglected and then from there staff feel unvalued and decide to leave as they feel they are not
being noticed within the organisation. It is also important to bring values to life that will be
meaningful to the organisation therefore to help make your company values more than good
words behaviour and commitment is utmost important.
Ways in which line managers at my work place are developed are by carrying out regular
appraisal training programs, going to off the job training centres where they get trained by
professions.
They set targets and with them they give prizes that motivate us and set clear objectives and
expectations that make us want to achieve them. My managers give out feedbacks sheet to the
staff to see how they feel and what could be done to improve. Regular acknowledgment is given
which makes us feel important and more valued. My line manager listens with empathy and
help, to agree and sort out any problems and issues.
Page
14 of 73
The Job roles that are needed for an HR Manager are to be aware
local, state and federal employment guidelines, manage payroll
maintain employees record, complete and record and to assist
employees and to understand them, they are also
involved in retraining or training new employees
existing employees or answering questions that
employees may have on policies or
procedures within the company. To provide
workplace safety, employee absenteeism
and any health issues also to resolve any
conflict.
of
issues,
or
Common work activities include:

Posting advertisements for new employees in
newspapers, on the internet or in trade specific
magazines. Contacting employment services or even executive
recruiters for very specialized postings.
Ensuring all record keeping with regards to workman's compensation, health and medical
insurance, and other state and government regulations is completed as required.
Overseeing the human resources department staff and handling all issues involving employee
complaints or questions that cannot be answered by other staff.
Managing office or agency health, safety and mental health and well-being issues.
Working with employers and employees in training and in-service presentations as required.
Hiring, supervising, training, monitoring and firing of staff.
I personally feel that my skills are more suited to be a HR Manager rather then a Line Manager
this is mainly because of my personality I have which is to be very understanding which allows
me to communicate well with others, people tend to listen and take on my advice rather then
feeling as I am looking down on them, I am very organised and good at planning and taking
actions, I can be very encouraging to team members and will not let them down and am most
likely to deal with any complaints at a higher level straight away. Therefore I feel I will adapt
better being given the role of a HR manager.
Overall I think that both Line managers and HR managers are equally important to any
organisation as the organisation highly relies on them and will not be able to manage without
them,
Page
15 of 73
1.4 ANALYZE THE IMPACT OF THE LEGAL AND

REGULATORY FRAMEWORK ON HUMAN RESOURCE
MANAGEMENT
HRM has various legal and regulatory frameworks on stuffing, compensations and benefits,
employee regulation and employee maintenance and welfares. For stuffing there are various
Page
16 of 73
acts like the child labour act-1986, the employment exchange (compulsory notification of
vacancies) act-1959, the apprentice act- 1961, the contract labour (regulation and abolition) act1970 and bonded labourer (abolition) act-1976. For compensations and benefits there are some
acts like the payment of wages act-1936, the minimum wages act-1936, the payment of bonus
act-1965, the equal remuneration act-1976. Employee maintenance/welfare acts are the
factories act-1948, the employees provident fund act-1952, employees state insurance act1948, payment of gratuity act-1972, the workmens compensations act-1923, the maternity act1961, the nines act-1952, the plantation act-1951, the motor transport workers act-1961, the
Indian electricity act, the pesticides at, the boiler act, the environment protection act. The
employee regulation acts are the trade union act-1926, the industrial dispute act-1947, the
industrial employment (standing orders) act- 1946, the sales promotion employees (condition of
service) act-1976.
Terms and Conditions of Employment in Sri Lanka

Law is the supreme power of a state commanding what is right and wrong. According to that
Labour law is Law for labours relating to their employment. The labour Law of Sri Lanka could
broadly be said to originate from the following;
Statutes- their objective is the regulation of minimum terms and conditions of employment
The awards, orders and judgments
Collective agreements entered in to between trade unions & employer
Labour Law in Sri Lanka commenced from about 1830 with the growth of plantation industry. At
present there are 45 labour status in operation of which some are more or less obsolete and
have any academic interest.
Terms is any undertaking in a contract being either a collection, a warranty or an in nominate
term (Osborns Concise Law Dictionary)
A condition is providing which makes the existence of a right dependant on the happening of an
event implied.
Classification of Labour Laws

Page
17 of 73
1.
Statutes on regulation of wages and conditions
Employee holiday Act No 06 of 1959

Holiday Act No 29 of 1971
Privilege Leave (private) Law Act No 14 of 1976
Budgetary Relief Allowance Act No 18 of 1978
Fuel Configuration five Day Week Act
Special Allowance of Workers Law
Supplementary Allowance of Workers Act
Wages Boards Ordinance No 43 of 1941
Shop and office Employees Act No 43 of 1950
2.
Statutes on employee welfare
Workmens Compensation Ordinance No 19 of 1934

Factories Ordinance No 45 of 1942
Employee provident fund Act No 46 of 1980
Payment Gratuity Act No 12 of 1983
3.
Statutes on industrial relations
Trade Union Ordinance No 14 of 1935

Industrial Dispute Act No 43 of 1950
Termination of Employment of workmen Act No 45 of 1971
Employee Council Act No 12 of 1979
4.
Statutes on obtaining jobs & training
Service contract Ordinance no 11 of 1865

Registration of Domestic Services Ordinance No 28 of 1871
Chauffeurs Regulation Ordinance No 23 of 1912
National Apprenticeship Act No 49 of 1971
Employment of Trainees Act No 08 of 1978
Foreign Employment Agency Act No 32 of 1980
Sri Lankan Bureau of Foreign Employment Act No 21 of 1985
5.
Statutes on women, young person and children
Mines ( prohibition of female labour underground ) Ordinance No 13 of 1937

Maternity Benefits ordinance No 32 of 1939
Mines, Quarries and Minerals Ordinance No 55 of 1947
Employment of Women, young Persons & Children Act No 47 of 1956
Even though there are many labour laws practice in Sri Lanka I was selected some Labour Acts
which are mainly emphasis the Terms and conditions of Employment in Sri Lanka.
Page
18 of 73
The concept of Employer and Employee relations first originated from the Master and
Servantrelationship in England in early times. The initial judicial decisions related to Domestic
employment. In modern times, the situation is quite different and we also have the
UnitedNations body namely the International Labour organization (ILO) situated in
Geneva,spearheading the cause of labour and better relations and harmony between
Employers and theiremployees. Sri Lanka is a respected member of the ILO because our
standards of industrial laware very high when compared to other countries in our region. It is
truly said that Sri Lanka leansin favour of the protection and well-being of our workers even at
the expense of productivity. Anobvious example is that we do not permit a hire and fire policy
that employers in many foreign
countries enjoy.
Overview of Sri Lankan legislation on Labour
Legislation in Sri Lanka relating to Industrial, Employment and Labour relations can be divided
into seven categories as follows;
1. Laws on Social Security
i. Employees provident Fund Act
ii. Employees Provident Fund (Special Provisions) Act
iii. Employees Trust Fund Act
iv. Employees Trust Fund (Special Provisions) Act
v. Payment of Gratuity Act
2. Laws on Welfare and Well-being of Employees
i. Employment of Women, young Persons and Children Act
ii. Maternity Benefits Ordinance
iii. Employment of Females in Mines Act
3. Occupational safety and health and Workmens compensation
i. Factories Ordinance
ii. Workmens Compensation Ordinance
4. Laws relating to terms and conditions of Employment

i. Wages Board Ordinance
ii. Shop and Office employees (Regulation of Employment and Remuneration) Act
iii. Employment of Trainees (Private Sector) Act
5. Labour relations
i. Trade Union Ordinance
ii. Employees Councils Act
Page
19 of 73
iii. Industrial Disputes Act

iv. Termination of Employment of Workers (Special Provisions) Act
6. Law relating to Plantations and Estate labour
i. Estate Labour (Indian) Ordinance
ii. Medical Wants Ordinance
iii. Indian Immigrant Labour Ordinance
iv. Minimum Wages (Indian Labour) Ordinance
v. Trade Union Representatives (Entry in Estates) Act
vi. Estate Quarters (Special Provisions) Act
vii. Allowances to Plantation Workers Act
viii. Services Contracts Ordinance
7. Foreign Employment
i. Sri Lanka Bureau of Foreign Employment Act
We now discuss each of the above areas of legislation highlighting the main provisions.
Laws relating to Social Security
Social Security of employees are addressed by three main mechanisms. They are the
Employees
Provident Fund, Employees Trust Fund and the Gratuity Fund. By them employees are granted
financial benefits upon completion of a statutory period of service, change of employment or
reaching the retirement age.
Employees Provident Fund (EPF)
Employees Provident Fund was established by Act No. 15 of 1958. Since then there have been
nine Amending Acts on the subject. Employers have to remit every month to the Central Bank,
an amount equivalent to 20% of the employees total earnings to the Fund. The Employees
contribution is 8% and the Employer has to contribute an amount equivalent to 12% of the
employees total earnings.
Earnings include wages, cost of living allowances and similar allowances, payment in
respectof holidays and leave, cash value of food provided by the employer and meal allowance
butexcludes overtime payments. Payments for work done during normal working hours on
weeklyholidays, Poya days or public holidays should also be considered as earnings for the
computation
of EPF contributions. Failure to remit EPF results in surcharges ranging from 5% to 50%.
Employees Trust Fund (ETF)
Page
20 of 73
The Employees Trust Fund Act No. 46 of 1980 (as amended) obliges the employer only to
contribute monthly 3% of the employees total wages to the Trust Fund created under it.
Gratuity
Gratuity to an employee Is over and above the EPF and ETF payments discussed above and
is
governed by the Payment of Gratuity Act No. 12 of 1983. A gratuity is a lump sum paymentmade
in recognition for services at the end of a period of employment.
Under the Act any employer who has employed more than 15 workmen in any industry
duringthe twelve months preceding the termination of the workman in question, is required to
pay agratuity to that workman if he has completed five years of service under him. The amount
formonthly paid employee is calculated at the rate of half a months salary for each completed
yearof service. Gratuity is also payable to workmen who are paid weekly or daily, at the rate of
14days salary for each completed year of service.
Gratuity is payable whether termination was by the employer of employee, except if
thetermination was for reasons of fraud, misappropriation of the employers money or
willfuldamage to the employers property, the amount of the loss or damage may be deducted
from theamount of gratuity due under the Act. If the workman dies while employed, any gratuity
due tohim must be paid to his legal heirs.
Laws relating to Welfare/Well-being of the Employees
Employment of Females in Mines Ordinance
No female of any age at any time, who have not been exempted by regulation, shall perform or
be employed on any underground work in a mine or enter a mine for the performance of any
work.
Maternity Benefits Ordinance
This is a law that was first enacted as far back as 1939. Subsequently, there were seven other
amending Acts passed in this regard from 1952 to 1985. An employee is restricted from
knowingly employing any women during the period of four weeks immediately following her
confinement.
Maternity benefits mean the amount payable under the provisions of this Ordinance to a
woman worker. A woman worker who has no children or has only one child is entitled to a period
of twelve weeks for which maternity benefits must be paid by the employer. However, in the
event the woman has two or more children, she will be entitled for a 6 weeks period of maternity
benefits.
Employment of Women, Young Persons and Children Act
There are three Acts on this subject. They are in relation to employment of Women, Young
Persons and Children at,
Night
Industrial Undertakings and at sea
Other than Industrial Undertakings and at sea.
Employment of Women and Young Persons at Night
Page
21 of 73
The legislation prohibits employment of any person under the age of 18 years at night whether
in
a public or private industrial undertaking or branch.
Women can be employed at night subject to certain basic requirements. It must be voluntary
and
written authority must be got from the Labour authorities for working after 10.00 p.m.; for
nightwork she must get 1.5 times the normal pay; female wardens must ensure the workers
welfare;there must be availability of rest rooms and refreshments and not more than ten days of
nightwork can be allocated per month.
Exemptions are granted to women holding a management or technical nature position, or those
who are employed in health and welfare services and in an industrial undertaking in which only
members of the family are employed.
Employment in Industrial Undertakings and at Sea
No employer can employ a child of age 15 or below unless otherwise the undertaking or the
ship
is one which only members of the same family are employed or children from a technical school
with the approval and under the supervision by an authority of the technical school.
Employment other than Employment in Industrial Undertakings and at Sea
This part of the Ct applies in relation to employment other than employment in industrial
undertakings and at sea.
Children under 14 cannot be employed during school hours and in the nights (8.00 p.m. to 6.00
a.m.) and must not be made to lift or move heavy items which can injure the child. Nor can such
children be given work in any occupation injurious to their health, education or well-being as
spelt out in the relevant provisions. Importantly, no such child can be employed in that are called
street industry.
Occupational
Safety
and
Health,
Factories
Ordinance
and
Workmens
CompensationOccupational health is regulated by the Factories Ordinance of 1942 and all
persons operatingfactories are conversant with the comprehensive provisions of this legislation
first enacted in1942. There have been over seven amendments to the law. Three main areas
covered are health,
safety and welfare as follows;
Health
Every factory must be kept clean with a conducive work environment. It must not be
overcrowded; there must be proper temperature, fresh air and ventilation. Floors must not be
wet
and there must be suitable and sufficient hygiene and sanitary convenience recognizing the
different sexes.
Safety
Every possible area of safety appears to have been covered since these provisions are taken
from well tested English legislation. For example, proper fencing of machinery, protection
against
Page
22 of 73
dangerous substances, stairways, gangways to the property to be fenced, proper training before
an employee is asked to work on machines and preventive measures in handling items
likehoists, lifts, cranes, boilers and explosives etc. Provisions are also made against accidents
by fire.
Welfare
Some of the key areas covered in this part of the statute is the supply of safe drinking
water,clothing for factory work, washing facilities, proper restrooms and seating facilities
etc.Workmens Compensation
The Workmens Compensation Ordinance, first enacted in 1934, provides for the payment
ofcompensation to workmen who are injured in the course of their employment. Since
itsenactment it has been amended several times especially by Act No. 15 of 1990. The
Ordinancespecifies and regulates the employers liability to pay compensation and specifies the
instancesin which the compensation should be paid. The compensation has to be paid for
a) An injury to a workman by accident arising out of and in the course of his employment
b) An occupational disease contracted by an employee whose service is not less than six
months in any process which is directly attributable to the nature of his employment.
The amount if compensation is to be determined by the Commissioner of Labour or his
Authorised Officers depending on the nature of injury to the workman. Most employees take out
insurance policies with insurers to cover this risk. An issue that normally arises is whether the
accident to the workman arose in the course of his employment. An accident that occurred
when the workman was at his own home or at a time after or before work will not be covered.
Also, the workman will not be covered for accidents caused when he was under the influence
ofliquor or drugs or was guilty of willful disregard of the safety equipment and
proceduresprovided at the workplace. A claim for workmens compensation must also be made
within two years of the accident. If an employer fails to pay, the workman or his dependant can
apply to the Commissioner of Labour within one year of the accident. An employer who fails to
pay within thirty days is liable to a surcharge, while wrongful refusal to pay can also result in a
fine.
A claim under the Workmans Compensation Ordinance does not prejudice the right of
aworkman or his dependants to institute proceedings in a District Court of the area where
theaccident occurred for the recovery of damages. However, in such a case he will be bound by
thegeneral principles of delictual liability that usually require proof of negligence unless
theemployer was in breach of some duty imposed on him by statute. Any award for damages by
thecourt will normally take into account any sum already paid to the workman under legislation.
Wages Boards
Wages Boards are bodies set up under the Wages boards Ordinance of 1941 (as amended) to
ensure minimum wages and a few other conditions such as holidays, leave and overtime rates
in
respect of specified trades. As at 2009, Wages Boards had been set up for 43 trades such as
Banking, Beedi manufacturing, Brick and Tile trade, cinema, coconut and rubber, garments,hotel
and catering, janitorial services, metal quarrying, security services, textile, tobacco etc.
Page
23 of 73
These Wages boards comprise an equal number of representatives of employers and

employees
in a given trade and upto three persons appointed by the Minister of Labour. Their principal
function is to determine the minimum wage payable to Workers in a particular trade. Many
employees pay more than the minimum wage.
The minimum wage may be prescribed as a basic rate plus a special living allowance based
onthe cost of living index or a consolidated amount. Failure to pay at least the minimum wage is
an
offence. Employees can, however, receive a higher wage by agreement with the employer. They
often do.
Shop and Office Employees

One of the most important and relevant statues in Sri Lankan
Labour law is the Shop and Office Employees (Regulation of
Employment and Remuneration) Act No. 19 of 1954.
This legislation was the result of a report of a Committee of Inquiry
appointed in the 1940s toexamine the employment conditions of
the countrys mercantile employees. The Act applies toall
employees within the definition of a shop or office and is in five
parts as follows;
Part I Regulation of hours of employment in shops and offices: health and
comfort ofemployees
Part II Payment of remuneration
Part IIIRegulation of remuneration
Part IVClosing order for shops
Part V General matters
The Act does not apply to the State as an employer. Unlike, the Wages Boards Ordinance,
thisAct specifically defines the entitlements of workmen, and does not vest decision making
powerin a separate autonomous body except under certain circumstances which is limited to
wagefixation.
Hours of Work
The normal days work is limited to 8 hours and a normal working week is limited to 45
hoursexcluding 1 hour for meals. Persons employed in different classes of shops and different
classes of offices may have different hours of work, subject however, to several
restrictions.Work in excess of the normal hours has to be treated as overtime and paid for at a
rate not less than one and one-half times the hourly rate, calculated by dividing the monthly rate
by 240.Executives in State Corporations are not entitled to overtime. The maximum amount of
overtime is limited to 12 hours per week.
Weekly Holidays
On completion of 28 hours of work in a week, the law provides for the granting of one and half
days holidays with pay, Week is defined to mean the period between midnight on anySaturday
night and midnight on the succeeding Saturday night.
Page
24 of 73
Annual Holidays
The total annual leave entitlement is 14, and provision is made when employment commences
between certain specified periods for the granting of the corresponding number of days as
leave,
in the succeeding year. Public holidays are granted with remuneration. Full moon poya
daysshould be observed as holidays. Employment on such days is strictly on an overtime basis.
Casual Leave
The entitlement of casual leave for a calendar year is 7 days. This is to be utilized on account of
private business or ill-health. In the commencing year of employment, one days is granted for
every two completed months.
Maternity Leave
Female employees are entitled to maternity leave as provided in the statute. These entitlements
are now well known. Maternity leave shall be in addition to other leave or holiday entitlements.
Salary payments and Deductions. The Act placed time limited within which employees salaries
should be paid and the deductions that may be made from such payments. Employers must
strictly observe these conditions.
Letter of Appointment
It is a fundamental requirement under this act that an employer issues a letter of appointment to
the employee detailing the conditions of employment. This ensures to the employee
certaininalienable rights under the law. The letter of appointment so issued becomes a contract
between
the parties. The minimum requirements of a letter of appointment are spelt out in the Act.
However, most employers have developed terms and conditions over and above what is
required
by the legislation. It is expected that if the letter of appointment is in English it be explained tothe
employee in his language (Sinhalese or Tamil) and he or she acknowledges that its terms and
conditions were clearly understood. The employee is entitled to a copy of the letter
ofappointment.
Records of Employees
Employers are obliged to maintain certain specified records in respect of their employees as
provided by the legislation. This is normally done by maintaining a Register of staff and also a
Personal file in respect of each employee which has a record of all details from date of joining
etc.
Apprenticeship, Probation and Training

General rules applicable
This is an important area because mayemployees commence their career as apprentices,
probationers and/or trainees. A contract of Apprenticeship is one where the employer agrees
toinstruct or teach the apprentice in his trade and to pay him an allowance during the existence
ofthe relationship. The apprentice in turn agrees to serve the master and to learn from him.The
case of the Probationer is different and the assessment during the period of probation relatesto
his all round suitability, which includes both his ability to perform the job and his conduct.
Page
25 of 73
Inthe case of an apprentice, the emphasis is on the learning of a skill and it follows that a person
engages in a period of apprenticeship only in respect of a job which requires a certain degree of
skill, which has to be acquired to perform the job. A probationer would also require sometraining
but it would not necessarily be for the purpose of making him skilled as such.Under the common
law of employer and employee, an apprentice or trainee does not have acontract of service and
is therefore not an employee. Yet, many of our statutes such as theIndustrial Disputes Act, the
Employees Provident Fund Act, the Termination of Employment ofworkmen (Special Provisions)
Act and the Gratuity Act defines a workman to include anapprentice or trainee. Employers
must be conscious of this.
Probation is a period during which an employer assesses the conduct and suitability of
anemployee for continued employment and the employee similarly assesses the suitability of
theconditions of service from his point of view. The period of probation is a contract of service
cantherefore be taken as a communication by the employer that in the event of the employee
proving
himself within the period of probation to the satisfaction of the employer that the probationer is a
fit and proper person to perform the duties for which he has been engaged. The
probationerwould be entitled to be confirmed in employment at the end of the probation period
and if not,his services can be terminated without notice.
It should be noted that a probationer is a permanent employee in the sense that he is on
amonthly contract of employment and the period of probation is strictly relevant only to
thequestion of termination in the event of the probationer being unsatisfactory.As regards
Trainees, a statute that employers currently resort to is the Employment of Trainees (Private)
Sector) Act No. 8 of 1978. This legislation was enacted to boost training ofunemployed persons.
Those employing trainees under this Act are provided specified monetaryincentives to pay such
trainees but most employers pay more than what is statutorily provided.
Under it, without any prejudice to any scheme of training of, or to the employment of apprentices
in any other law, an employer may enter into a contract of training with a person for a period
notexceeding one year for the purpose of providing practical training to the trainee in any of
thevocations specified in the Act and on the payment of a specified allowance. The vocations
specified include:
a) Clerks, stenographers, book-keepers, typists, supervisors, salesmen, shop assistants,
storekeepers, telephone operators, cashiers, foremen or any other similar vocations.
b)
Watchers, caretakers, bicycle orderlies, peons, liftmen, office and shop labourers,
outsidemessengers, tea boys or other similar vocation.
The legislation excludes the application of the following statutes to such trainees:
i. The Shop and Office Employees Act
ii. Industrial Disputed Act
iii. Wages Boards Ordinance
iv. Trade Unions Ordinance
v. Termination of Employment Act and
vi. Any collective Agreement
Page
26 of 73
The Act also provides for the employer to terminate such training on disciplinary grounds. After
the training is over, the employer is expected to provide the trainee with employment in
avocation in which he was trained or in other suitable employment. Neglect or refusal to do
soamounts to an offence and the Labour Department can initiate action.
Owing to the special requirements of
the above legislation a distinction
should be drawn betweencontracts of
training specifically entered under the
provisions of the above law and those
whichare fixed term contracts of
training not governed by the law. In
the case of the latter, theprovisions of
Trainees (Private Sector) Act of 1978
will
have
no
application.
Consequently,
therequirement
of
obtaining the approval of the
Commissioner of Labour will not arise,
as suchcontracts will be governed by
the terms specified in such contracts.
2.1 THE REASONS FOR HUMAN RESOURSE PLANNING IN

ORGANIZATIONS
HR planning forms an integral part of any organization and it ensures that an organization
succeeds in achieving all its targets. The following post explores the significance of HR planning
in organizational success.
Just as planning is important in our daily lives, planning forms an integral part of an
organization. An organizations success lies to a great extent to the skill, creativity and
dedication of its employees. Here comes the importance of Human Resource Planning.
Surprisingly, many organizations tend to overlook this aspect of HR and some are even not
completely aware of it. Organizations that overlook this aspect of planning, have less chances of
Page
27 of 73
surviving in the long run; needless to say that a proper HR planning can help in dealing with a
lot many issues in an effective way.
HR Planning Definition
HR planning is a part of the larger gamut of Human Resources, and it is defined as the
systematic analysis of HR needs that ensures that correct number of employees with the
necessary skills are available when they are required. While preparing the planning programme,
practitioners should bear in mind the objectives that they need to achieve. This is precisely the
reason for seeking employment by most jobseekers. If these requirements are neglected by
authorities it can lead to unnecessary poor performances and other industrial issues.
Steps in Human Resource Planning

Human resource planning is a process through which the company anticipates future business
and environmental forces. Human resources planning assess the manpower requirement for
future period of time. It attempts to provide sufficient manpower required to perform
organizational activities. HR planning is a continuous process which starts with identification of
HR objectives, move through analysis of manpower resources and ends at appraisal of HR
planning. Following are the major steps involved in human resource planning:
Six steps in human resource planning.

1. Assessing Human Resources
The assessment of HR begins with environmental analysis, under which the external (PEST)
and internal (objectives, resources and structure) are analyzed to assess the currently available
HR inventory level. After the analysis of external and internal forces of the organization, it will be
easier for HR manager to find out the internal strengths as well as weakness of the organization
in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the
workers and skills already available within the organization and a comprehensive job analysis.
2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization.
Demand forecasting is a process of determining future needs for HR in terms of quantity and
quality. It is done to meet the future personnel requirements of the organization to achieve the
desired level of output. Future human resource need can be estimated with the help of the
organization's current human resource situation and analysis of organizational plans an
procedures. It will be necessary to perform a year-by-year analysis for every significant level
and type.
3. Supply Forecasting
Page
28 of 73
Supply is another side of human resource assessment. It is concerned with the estimation of
supply of manpower given the analysis of current resource and future availability of human
resource in the organization. It estimates the future sources of HR that are likely to be available
from within an outside the organization. Internal source includes promotion, transfer, job
enlargement and enrichment, whereas external source includes recruitment of fresh candidates
who are capable of performing well in the organization.
4. Matching Demand and Supply

It is another step of human resource planning. It is concerned with bringing the forecast of future
demand and supply of HR. The matching process refers to bring demand and supply in an
equilibrium position so that shortages and over staffing position will be solved. In case of
shortages an organization has to hire more required number of employees. Conversely, in the
case of over staffing it has to reduce the level of existing employment. Hence, it is concluded
that this matching process gives knowledge about requirements and sources of HR.
5. Action Plan
It is the last phase of human resource planning which is concerned with surplus and shortages
of human resource. Under it, the HR plan is executed through the designation of different HR
activities. The major activities which are required to execute the HR plan are recruitment,
selection, placement, training and development, socialization etc. Finally, this step is followed by
control and evaluation of performance of HR to check whether the HR planning matches the HR
objectives and policies. This action plan should be updated according to change in time and
conditions.
6. Monitoring, Control and Feedback

It mainly involves implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan is
monitored strictly to identify the deficiencies and remove it. Comparison between the human
resource plan and its actual implementation is done to ensure the appropriate action and the
availability of the required number of employees for various jobs.
Becoming a HR Professional
Now, as a task, planning is not easy. It requires a lot of concentrated efforts to come with such a
programme that would help ease your work. Competent HR professionals put in a lot of effort in
Page
29 of 73
order to launch an efficient HR planning programme. In order to become a HR professional

formal training is mandatory. Several courses related to HR are taught in educational institutes
across the globe. Among all major courses, MBA in HR is the most popular. As a course, MBA in
HR is offered in several institutes. An extensive course in HR provides the required curriculum
and training that empowers a candidate to excel in this field.
Significance of HR Planning
Planning is a process that has to be commenced from somewhere and completed for a
particular purpose. It involves gathering information that ensures managers are able to make
sound decisions. The obtained information is also utilized in order to achieve its the goals. If HR
planning is applied properly, it can help in answering the four important questions
1. What is the strength of the organization?
2. As far as skill sets are required what kind of employees does the organization have?
3. How should the organization function in order to be able to utilize all its resources
properly?
4. How can the company retain its employees?
Effective HR planning helps the organization work smoothly and also achieves success in the
present times. HR professionals working towards developing HR planning for an organization,
assists the organization to manage its staff strategically. Apart from that HR planning can also
ensure a proper career planning for employees and help them in achieving their goals. It will
also ensure augmentation and eventually make the organization a better place to work in. The
major steps involved in HR planning include the following:
Forecasting
Inventory
Audit
HR Resource Plan
Actioning of Plan
Monitoring and Control
From forecasting to Actioning of planning requires a lot of concentrated effort. The HR

department of any organization has an enormous task that of keeping pace with all the
changes and ensure that the organization has the right kind of employees at the right time.
Ineffective HR Planning
On the other hand, poor HR planning or the absence of the same in an organization can result
in huge loss or financial crisis. It may take a long time for vacancies to be filled. Needless to say
it hampers work and has an adverse effect on the organization in the long run.
One of the most important reasons as to why HR planning should be implemented and
effectively managed is the costs that are involved. Since budget forms an integral part of any
business organization, proper planning can ensure provision costs related to HR.
Page
30 of 73
HR planning must be taken seriously and it should involve creating a path for advancement for
boththe organization and the employee.
2.2 THE STAGES INVOLVED IN PLANNING HUMAN RESOURCE

REQUIREMENT
The planning processes of most best practice organizations not only define what will be
accomplished within a given time-frame, but also the numbers and types of human resources
that will be needed to achieve the defined business goals (e.g., number of human resources;
the required competencies; when the resources will be needed; etc.).
Competency-based management supports the integration of human resources planning with
business planning by allowing organizations to assess the current human resource capacity
Page
31 of 73
based on their competencies against the capacity needed to achieve the vision, mission and
business goals of the organization. Targeted human resource strategies, plans and programs to
address gaps (e.g., hiring / staffing; learning; career development; succession management;
etc.) are then designed, developed and implemented to close the gaps.
These strategies and programs are monitored and evaluated on a regular
to ensure that they are moving the organizations in the desired direction,
including closing employee competency gaps, and corrections are made
needed. This Strategic HR Planning and evaluation
cycle is depicted in the diagram below. Human
resource planning is the ongoing process of
systematic planning to achieve the best use of an
organisation's most valuable asset - its human
resources. The objective of human resource (HR)
planning is to ensure the best fit between
employees and jobs, while avoiding
workforce shortages or spares. The three key
of the HR planning process are forecasting labour
analysing present labour supply, and balancing projected
demand and supply.
basis
as
elements
demand,
labour
Implementation Stages
1. Assessing the current HR capacity
Develop a skills catalog for your employees so that you have a clear understanding of
what your staff currently holds. This employee catalog should include everything from
volunteer activities to certifications, of all degrees not just topics pertaining to their
particular position. These catalogs can be assessed to deem whether or not an
employee is ready to add more responsibility, or to forecast the employee's future
development plans.
2. Forecasting HR requirements
This step includes projecting what the HR needs for the future will be based on the
strategic goals of the organization. Keep in mind you will need to also accommodate for
external challenges that can affect your organization.
Some questions to ask during this stage include:

o
Which jobs will need to be filled in the upcoming period?
What skill sets will people need?

Page
32 of 73
How many staff will be required to meet the strategic goals of our organization?
Is the economy affecting our work and ability to appeal to new employees?
How is our community evolving or expected to change in the upcoming period?
3. Gap analysis
During this step you will observe where your organization is currently, and where you
want to be in the future. You will identify things such as, the employee count, and the
skills evaluation and compare it to what will be needed to achieve your future goal.
During this phase you should also review your current HR practices and identify what
you are doing that is useful and what you can add, that will help you achieve your goal.
Questions to answer in this stage include:

What new jobs will we need?
What new skills will we need?
Do our present employees have the necessary skills?
Are employees currently aligned to their strengths?
Are current HR practices adequate to meet our future goal
4. Developing HR strategies to support the strategies of the organization.
There are 5 HR strategies that you can follow to meet your organizational goals.
Restructuring Strategies
Training and development strategies
This includes reducing staff, regrouping tasks to create well-designed

jobs, and reorganizing work groups to perform more efficiently.
This includes providing the current staff with training and development
opportunities to encompass new roles in the organization
Recruitment Strategies
This includes recruiting new hires that already have the skills the
organization will need in the future.
Page
33 of 73
Outsourcing strategies
This includes outreaching to external individuals or organizations to

complete certain tasks.
Collaboration Strategies.
This includes collaborating with other organizations to learn from how

others do things, allow employees to gain skills and knowledge not
previously available in their own organization.
Tools and Technologies of SHRP

Human resources uses various tools and technologies to achieve its goals, especially when it
comes to strategic planning. These technologies include but are not limited to social media,
policies and management information systems.
Technologies of SHRP:
Social Media
Social Media is used as a tool in Human Resources and business in

general. This discipline deals with selecting appropriate Social Media
sites and formats from the myriad options available and leveraging the
same to create value for the organization. This requires an in-depth
understanding of the key benefits and pitfalls of Social Media and
managing these effectively in the organizations context. This discipline
emphasizes harnessing social media for effective Human Resource
Management, which includes recruitment, collaboration and engagement.
It also explores the non financial impact as well as the approaches for
measuring the return on investment in Social Media. Common social
media outlets used in the HR field are LinkedIn, Facebook and Google
Plus.
Management Information Systems (MIS)
MIS are computerized information-processing systems designed to

support the activities of company or organizational management. They go
by various names all with varying functions, in the HR field these tools are
commonly referred to as Human Resource Information Systems
(HRIS).Some of these software include Zen fits, Halogen Talent Space,
Bamboo HR, Clear Company HRM and many more. These programs
assist professionals in records management, benefit administration and
inquiries, hiring and team placement, coaching and training, attendance
and payroll management.
Page
34 of 73
Tools of SHRP
Policy
Policies are set in place to assist in SHRP. These policies are targeted not
only for selecting and training employees but also how they should
conduct themselves in and outside the workplace and various other
aspects of being employed at a workplace. For example, within several
companies exist Social Media policy which outlines how an employee
should conduct themselves on personal accounts as a representative of
their workplace.
Common Policies in HR
Equal Employment Opportunity policies
Employee classifications
Workdays, paydays, and pay advances
Overtime compensation
Meal periods and break periods
Payroll deductions
Vacation policies
Holidays
Sick days and personal leave (for bereavement, jury duty,

voting, etc.)
Performance evaluations and salary increases
Performance improvement
Termination policies
Behavioral Science
Behavioral Science is the scientific study of Human behavior. This applied

science is used as a tool in SHRP to help understand and manage human
resources. This tool is particularly useful in organizational development
and understanding/establishing organizational culture.
Page
35 of 73
Theories
Strategic Human resource Management
Strategic Human Resource Management is "critical importance of human resources to strategy,
organizational capability to adapt to change and the goals of the organization". In other words
this is a strategy that intends to adapt the goals of an organization and is built off of other
theories such as the contingency theory as well as institutional theory which fit under the
umbrella of organizational theory. These theories look at the universalistic, contingency and
configurationally perspectives to see the effect of human resource practices in organizations.
The universalistic perspective says that there are better human resource practices than others
and those should be adopted within organization while contingency says that human resource
practices need to align with other organization practices or the organizations mission, and
configurationally perspective is based on how to combine multiple aspects of human resource
practices with effectiveness or performance. This can also be viewed as how human resource
practices fit vertically or horizontally in an organization. This theory also involves looking at the
value of human capital as well as social capitol both in and outside of organizations and how
this affects human resource practices. Human capitol being knowledge and skills of individuals
working for the organization and social capitol is based on the character and value of
relationships in and out of the organization. "Colbert suggests that SHRM should focus on the
interactions and processes of the organizations social systemthe intentions, choices and
actions of people in the system and on HR systems as a coherent whole.
Resource dependency theory
Resource dependence theory which is the theory that organizations are not self sustaining there
they must depend on outside resources to stay functioning. "Resources and dependence could
help to explain how HR practices evolve from the interaction between nonprofits and their
environment, how they deploy employee skills, behaviors and how HR systems are managed.
Page
36 of 73
International Implications
The current definition of strategic human resource planning is defined as a process that
identifies current and future human resources needs for an organization to achieve its goals. It
further explains that aging worker populations in most western countries and growing demands
for qualified workers in developing economies have underscored the importance of effective
Human Resources Planning. When it comes to identifying best practices, forecasting labor
demand, analyzing present labor supply, and balancing projected labor demand and supply as
the threekey elements of strategic human resource planning. By leaving out sufficient
information in regards to the current worldwide phenomena known as globalization, the
wikipedia article disregards Kanters first frontier of strategic human resource management,
which is increasing organizational flexibility.
As shown by Tung, In the past three decades or so, globalization/regionalization, migration and
reverse migration (also referred to as "brain circulation"), the ascendancy of emerging markets,
the demand for people with a global mindset, and the worldwide war for talent have brought
about fundamental changes to the nature, magnitude, and raison d'etre for human resource
management (HRM) in a global context.
More information is needed that provides a global perspective to strategic human resource
planning to ensure that business can attract the best foreign employees as well as adaptation
strategies to allow foreign companies smooth assimilation should they decide to invest here.
Festing offers a superb comparison of such perspectives that adds to our understanding of the
effects of globalization and localization on comparative strategic human resource management
by providing an encompassing overview of the existing research paradigms.
2.3 COMPARE THE REQUIREMENT AND SELECTION PROCESS IN

TWO ORGANIZATIONS.
Page
37 of 73
I would like to compare ABS recruitment and selection process with that of HERO. ABS tries to
fill out vacant post from internal workforce first. For the external recruitment Tesco announces
vacancies online for only managerial posts. And only online application is accepted for
managerial posts. For other posts ABS advertise on stores vacancy boards. From the
applications, ABS shortlists the best fit applicants and call them for interview. For final selection
short-listed applicants need to attend an assessment centre. At the assessment centre
candidates are given different problems that they might have to face in stores during their duty.
Finally, ABS managers select and recruit the best candidates from them.
In contrast, selection and recruitment procedures practiced in HERO are quite different from that
practiced in ABS. Online application is must for all the posts in HERO and applicant must
succeed in an online test before he is considered for further stages. From the successful
applicants HERO calls the best fit applicants for an introductory interview where HR Manger
verifies if the person is the one who applied online. HR Manger also checks the proof of identity
and eligibility of work of the candidates. Then candidates sit for test where video clips of
different situations are shown and they are required to choose the best and/or worse answers in
those scenario. There is another section to test mathematical ability of candidates. In the final
section candidates need to agree or disagree with quite a few statements. The successful
candidates are called for 2nd interview. Finally, HR Manager recruits the best fit candidates for
HERO.
Important parts of the requirement and selection process

1. Suitability
Writing an accurate position description is an important part of the recruitment process. It
describes the primary tasks involved as well as the core competencies required to perform the
role.A good recruitment and selection policy would require those writing job descriptions to give
precedence to the competencies that would make the most positive contribution to the
organisations business requirements (i.e. flexibility, initiative, leadership etc).
2. Consistency
A good recruitment and selection policy will also require that hiring managers use predetermined criteria at all stages of the recruitment process, thereby reducing the risk of bias or
discrimination. In the screening stage, the key selection criteria should have been determined
before the job was advertised and clearly displayed in the advertisement and job description.
Each candidate would then be evaluated according to those criteria only. When interviewing
candidates, the same interviewers should be present at each interview and a set of predetermined questions asked of each candidate, allowing them equal time to respond.
Page
38 of 73
Reference checks should be conducted before any appointment is made and should be carried
out in a consistent manner (i.e. asking similar questions of each candidates referees and former
employers).
It should be noted that treating everyone consistently does not always imply fairness. If a
candidate is at a disadvantage for any reason (i.e. has a disability), you may need to take their
individual circumstances into account, so they are given an equal opportunity to present their
case.
2. Legality
Privacy and equal opportunity legislation require that the recruitment process is conducted in a
fair and transparent manner and a good recruitment and selection policy will always make this
very clear to recruiters. During no stage of the recruitment process (from advertisement to
interview) can there be any discriminatory behavior, based on a persons age, sex, marital
status, religion, nationality, sexual orientation or disability.
A candidate may have recourse to legal action if they feel they have been discriminated against,
so impartiality is not only the right thing to do, its also good risk management practice.
Discrimination may be quite unintentional.
For example, using terms in a job advertisement such as young and energetic or new
graduate may seem harmless enough, but should be avoided as they are implying that you
must be young to apply for the job.
Privacy laws also require that a candidates application is treated confidentially. Penalties apply
if breaches occur, so here as well, a good recruitment and selection policy helps to protect the
organisationsbest interests.
An example of a privacy breach would be a recruiter discussing the details of a confidential job
application with their family or friends. A recruitment and selection policy that reminds staff about
the implications of possible lapses such as these can go a long way towards ensuring they
never happen.
4. Credibility
Page
39 of 73
Not all job advertisements are genuine. Some are placed by organizations wishing to build up a
talent pool or to simply to test the waters and see whats out there.
If an organization calls for certain application procedures to be followed, candidates can feel
confident the position they are applying for actually exists and that their efforts will not be in
vain.Candidates can also see you are a reputable employer by the good practices you follow
and are more likely to want to become an employee of your organization.
5. Transparency
By requiring transparent procedures at every step, the recruitment and selection policy ensures
that all stakeholders in the recruitment process (HR, department head, line manager etc) are
able to follow the process and be confident of the outcome.
Candidates should be kept informed of the status of their application and notified if
unsuccessful. Reasons for decisions made during the recruitment process should be
documented and a transparent appeals process put in place if a candidate is unhappy with the
outcome
Page
40 of 73
2.4 THE EFFECTIVENESS OF THE RECUIREMENT AND SELECTION

TECHNIQUES IN TWO ORGANIZATIONS
Clearly, HERO has a smarter and more effective recruitment and selection process than ABS
has. First of all, Tesco has no options for online application other than managerial posts
whereas HERO has that option open for all the posts. ABS managers need to spend enormous
time to make the short list as anyone can apply for the vacancies in Tesco. Besides, it is much
easier for HERO managers as applicant must pass an online test to be considered for a vacant
post. Therefore, HERO managers get a filtered list for preliminary selection. Candidates who
passed an online test are likely to have better understanding of the job than the candidates who
do not take any test.
HERO uses video clips during their tests whereas ABS relies on situation based test. Using
video clips during test is certainly more effective than situation based test. Another important
skill tested by HERO is mathematical ability of applicants. ABS has a fairly good recruitment and
selection procedure too; but not the best one. Tesco may consider using some the techniques
that are being used by HERO in their recruitment and selection process.
Leaders technics do to get people to work together to attain organizational goals
1 Define a very clear picture of the futurea vision for the team. This is crucial, because
teams search desperately for specific targets. Consider the old expression:
you dont know where you are going, any road will get you there.
Journeys without a clear destination leave groups feeling flat
and lost. Keeping teams informed on where theyre headed
how best to get there means leaders must be prepared to
acknowledge andadapt to changes in operational conditions
and even objectives. Leaders cannot sit back and watch,
instead must create and recreate the vision and team spirit
that stops people from losing heart and becoming lost.
If
and
but
2 Be genuine, even if it means lowering your guard. Leaders who

create click have an uncanny sense about how and when to express
their inner selves. They will even reveal their own vulnerabilities at the
right time
to gain the respect of those around them. They are not so concerned
about
projecting a perfect image they know that high-impact leaders get
results
by laughing at their own flaws. They dont play make-believe, knowing its more important to be
than to seem to be.
3 Ask good questions. They use inquiry and advocacy in such a way as to keep them abreast of
what is really going on. They seem to use a simple formula of the 70-20-10 rule in
Page
41 of 73
conversations: 70 percent listening, 20 percent enquiring with just the right amount of advocacy,
and 10 percent tracking (i.e., summarizing and synthesizing information, and providing possible
courses of action).
4 Talk about thingseven the hard things. A leader who gets their team to click is not afraid to
talk about the tough stuff. They find ways to have the difficult conversations in the knowledge
that burying problems doesnt make them go away. They also know that if they, as leader, dont
talk about things, no-one will and, pretty soon, a culture will develop in which too many things
are left unsaid. (I can always tell when teams are dysfunctional by measuring the amount of
stuff not talked about, or what I call the lets not go there issues.)
5 Follow through on commitments. Leaders of high-performing teams find ways to build trust
and maintain it, especially by making teams hold to their commitments and keeping the teams
view of its goals clear. However, they also know how to distinguish professional trust from blind
loyalty.
6 Let others speak first. In high-performing teams, members see themselves as equal in terms
of communication. Leaders should therefore encourage this by putting the other persons need
to express his or her agenda ahead of their own.
7 Listen. High-performing teams are comprised of people who have mastered the art of listening
without fear, of allowing others to speak without reacting strongly or negatively to what is being
said, or what they anticipate will be said. The leader fosters and honors this attribute within the
team by quickly putting a stop to bad conversational behavior that cuts other people off and
implies that their ideas are not valued. The leader knows that achieving higher levels of
innovation requires team members to be unafraid to express unusual ideas and advocate
experimental processes. They emphasize this by publicly thanking those who take risksand by
making sure that sharpshooters put their guns away.
8 Face up to non-performing players. This brings us to a very important characteristic of high
performing teams, which is that their leaders do not tolerate players who pull the team apart.
Interestingly, experienced leaders frequently maintain unity and discipline through third parties
in the form of people we call passionate champions. A leader may surround him- or herself
with several passionate champions, who have established an understanding and close working
relationship with one another, and who are totally focused on, and committed to, the teams
objectives. They are capable of getting the job doneand not afraid to remove people who are
failing to help them do so.
Page
42 of 73
3.1 THE LINK BETWEEN MORTIVATIONAL THEORY AND REWARD

Motivation in simple words may be understood as the set of forces that cause people to behave
in certain ways. It is a process that starts with a physiological deficiency or need that activities
behaviour or a drive that is aimed at a goal or an incentive.
The concept of motivation occupies a central place in the discipline of Organizational Behaviour.
It is a concept, which has received the maximum attention from the academicians and
researchers alike. Since a motivated employee is highly productive and highly quality oriented,
the managers are also interested the concept of motivation.
Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an
activity is satisfying or pleasurable in and of itself. Naturally, these activities are things we like
and want to do. For most of us, intrinsically enjoyable activities are things like eating, resting,
laughing, playing games, winning, creating, seeing and hearing beautiful things and people,
being held lovingly, having sex, and so on. To do these things we don't need to be paid,
applauded, cheered, thanked, respected, or anything--commonly we do them for the good
feelings we automatically and naturally get from the activity. Intrinsic rewards also involve
pleasurable internal feelings or thoughts, like feeling proud or having a sense of mastery
following studying hard and succeeding in a class.
Many, maybe most, activities are not intrinsically satisfying enough to get most of us to do them
consistently, so extrinsic motivation needs to be applied in the form of rewards (positive
reinforcements), incentives, or as a way to avoid some unpleasant condition ("negative
reinforcement" or punishment). Examples: You work doing an ordinary job for pay. You study for
good grades or to avoid failing or to prepare for a good future. You do housework to get a clean,
organized house and/or a spouse's appreciation or to avoid her/his disapproval. A teenager
comes home from a date on time in order to avoid being grounded. These are all activities that
are commonly sustained by external pay offs, not because you love working, studying, cleaning,
and coming home early.
Are rewards, particularly money rewards, really motivators? The answer to this question
is YES and NO.
Money is understood to be powerful motivator for more than one reason. In the first place,
money is fundamental for completion of a task. The employee takes pay as the reward for his or
her work, and the employer views it as the price for using the services of the employee. Second,
as a medium of exchange. Third, money is one of the hygiene factors, and improving
maintenance factors is the first step in efforts directed towards motivation. Fourth, money also
performs the function of a score card by which employees assess the value that the
organization places on
Page
43 of 73
their services and by which employees can compare their values to others. Fifth, reinforcement
and expectancy theories attest to the value of money as a motivator. Sixth, money acts as a
punctuation in ones life. It is an attention getting and effect producing mechanism. Money, has
therefore tremendous importance in influencing employee behaviour. Seventh, money is easily
vulnerable to manipulation. Finally, money will be a powerful motivator for a person who is tense
and anxious about lack o money. But behavioural scientists think otherwise. They downgrade
monetary rewards as a motivator. They prefer, instead, other techniques such as challenging
jobs, goals, participation in decision-making and other non-monetary rewards for motivating
employees.
Types of Reward Systems
The financial rewards are basically of three types:
Profit sharing;
Job evaluation; and
Merit rating.
Profit Sharing
Profit sharing could be on a macro basis or on a micro basis. The former relates to the entire
company as a whole and the latter to a particular section or group dealing with a particular
activity and/or product. On a macro level, it would be difficult to identify and reward outstanding
performance. This is possible on a micro level by treating the particular activity as a cost and
profit center by itself. This is easier said than done, since overheads and other common
services have to be charged and this cannot be done completely objectively. The cost allocation
in such cases is somewhat arbitrary and the profit will therefore not be a true reflection of the
performance of that particular group or activity.
Job Evaluation
In case of job evaluation, the various component factors have to be isolated and evaluated for
purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale
agreed beforehand by the union and the management joint committee. The total rating for each
job then forms the basis of wage structure. However, there must be a base level, representing,
in effect, the 'minimum wage', depending on the nature of work and the geographical area. In
some cases and in some countries these are stipulated by law. A typical, though somewhat
broad, list of job factors is as follows:
working environment;
Physical characteristics
Mental characteristics
Extent of responsibility
Training and experience.
Page
44 of 73
In case of managers, the factors are:

Responsibility
Expertise
Human relations.
Merit Rating
Merit rating has been used as an indicator of performance. Each employee is rated, typically as
excellent, good, average or poor, in respect of the following abilities:
Communication;
Human relations, including leadership and motivation
Intelligence
Judgment
Knowledge.
The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias
of the rater who may be too lenient, may not be objective and may also have favorites or
otherwise in the group being rated.
I am familiar with Nesco Ltd. Nesco is a leading producer of gas in Italy. At Nesco the following
are used to improve organizational performance.
Financial Rewards
These rewards in organizations help employees to be more committed and motivated to their
job and working environment
System rewards are automatically given to all employees for merely being members of
their organisation. System rewards can be defined as being the basic wage rates.
Individual rewards are given to employees based on the quality and quantity of their
performance. Performance related pay (PRP) is seen as an individual reward policy,
where pay is rewarded in relation to the volume of output. PRP can cause divisions
amongst workers, where employees become more worried about the fact that their
colleagues are being paid more than them.
Growth rewards are received by employees for job innovation, learning and
improvement.
The key to managing performance through rewards is linking the desired performance with the
appropriate reward.
Page
45 of 73
Non-financial Rewards
In an ever more competitive environment, the aim of organizations must now be to focus on
increasing the added value of their employees. This is achieved, by encouraging employees to
increase their effort and performance higher than the average standards. This has been carried
out using employee appraisals and motivational methods.
Employers have become increasingly aware of the rich potential for good constructive ideas that
exist from the employees on the job experiences. One method for using this knowledge is
through suggestion schemes, these are becoming highly recognized, as they allow for
improvements in all areas of work. These schemes are very flexible and can be readily adapted
to meet all kinds of working conditions. Suggestion schemes can be seen as a means of
increasing profit and worker participation.
Suggestion schemes aim to improve employee attitudes by directing their attention to the
positive and progressive aspects of their jobs. This helps to boost employee morale and
increase job satisfaction. It can be identified that if an employee is unhappy in his/her job it
reflects on a negative attitude on his/her performance and also with other people.
Experience in many companies has shown low employee morale reflects on low productivity
and increasing costly errors. Suggestion schemes play a useful role in increasing and
maintaining morale.
Another method which is not related to pay is the performance appraisal system. This method is
used as a means of raising individual performance and identifying development needs.
Appraisal systems today are becoming part of the management culture, where managers feel it
necessary to appraise and be appraised.
Self Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding
any negative feedback from traditional appraisals. Self rating is an effective way of trying to get
the employee to look at what their roles are in relation to business needs.
It is fair to state that employees are not motivated by money alone. Paying different wage rates
to employees doing the same jobs can cause more problems than benefits.
There are other incentives to reward employees, other than financial such as appraisals.
Appraisals can prove to be an effective means for looking at human resources, as they allow us
to:
Page
46 of 73
Ensure that the abilities and energies of individuals are being used effectively.
Allow employers to identify better uses of individuals talents and experience.
Training needs can also be identified.
Future decision making as data of abilities can be kept on file for future reference.
Other examples of incentives/motivators include:

Team briefings - Management tell sub-ordinates what needs to be achieved, this opens up
the lines of communication, and makes everyone aware of what needs to be done.
Team buildings - Employees are taken on outings to pursue some systematic group
exercises led by a trainer or time spent on social activities. The logic is to enthuse a team
working ethic.
Quality circles - Regular meeting sessions where a group of employees discuss quality
related issues.
It can be said that if managers are to be successful, they must focus on strategies that improve
the overall performance of the business by using employees as a vital resource which needs to
be nurtured and not just developing and implementing control systems to fix short term
problems
Maslow (1943) stated that people are motivated to achieve certain needs. When one need is
fulfilled a person seeks to fulfill the next one, and so on.The earliest and most widespread
version of Maslow's (1943, 1954)hierarchy of needs includes five motivational needs, often
depicted as hierarchical levels within a pyramid.This five stage model can be divided into basic
and psychological needs which ensure survival (e.g. physiological, safety, love, and esteem)
and growth needs (self-actualization).
Page
47 of 73
The deficiency, or basic needs are said to motivate people when they are unmet. Also, the need
to fulfil such needs will become stronger the longer the duration they are denied. For example,
the longer a person goes without food the more hungry they will become.
One must satisfy lower level basic needs before progressing on to meet higher level growth
needs. Once these needs have been reasonably satisfied, one may be able to reach the highest
level called self-actualization.
.
Page
48 of 73
The hourly rate is divided into pay for each of the following factors:
Hourly
Pay
Pay
Pay
Pay for Working
.
Rate
for Skill
for Effort
for Responsibility
Conditions
Job
Secretary
Admin
Assistant
Supervisor
Manager
Rs.90
45
20
20
05
Rs110
55
25
25
05
Rs.150
Rs.210
60
90
35
35
40
70
15
15
3.2 THE PROCESS OF JOB EVALUTION AND OTHER FACTORS

DETERMINING PAY
What is the job evaluation?
A job evaluation is a systematic way of determining the value/worth of a job in relation to other
jobs in an organization. It tries to make a systematic comparison between jobs to assess their
relative worth for the purpose of establishing a rational pay structure.
Actor Comparison A set of compensable factors are identified as determining the worth of jobs.
Typically the number of compensable factors is small (4 or 5). Examples of compensable factors
are:
1. Skill
2. Responsibilities
3. Effort
4. Working Conditions
Next, benchmark jobs are identified. Benchmark jobs should be selected as having certain
characteristics.
1. equitable pay (not overpaid or underpaid)
2. range of the factors (for each factor, some jobs would be at the low end of the factor
while others would be at the high end of the factor).
The jobs are then priced and the total pay for each job is divided into pay for each factor. See
example matrix below:
Job Evaluation: Factor Comparison
Page
49 of 73
This process establishes the rate of pay for each factor for each benchmark job. Slight
adjustments may need o be made to the matrix to ensure equitable dollar weighting of the
factors.
The other jobs in the organization are then compared with the benchmark jobs and rates of pay
for each factor are summed to determine the rates of pay for each of the other jobs.
Disadvantages
Advantages
The value of the job is expressed in

monetary terms.
Can be applied to a wide range of

jobs.
Can be applied to newly created jobs.
The pay for each factor is based on

judgements that are subjective.
The standard used for determining the

pay for each factor may have build in
biases that would affect certain
groups of employees (females or
minorities).
What goes into determining how much money you make? In most organizations, salaries are
determined by mapping roles and job descriptions with similar organizations (competitors)
through a third-party compensation and benchmarking service. A typical job is broken down into
its responsibilities, criticality, complexity, and market availability to name a few crucial factors.
Based on these factors, the range for a job is arrived upon.
Every organization has its compensation philosophy how it wants to position itself in the
market with reference to pay, the companies that it considers its competitors, the talent that it
considers critical and therefore be more flexible with pay, etc. So lets say the market rate for a
sales representative is Rs.40,000 Rs.60,000. A company can choose to pay its own sales
representative anywhere within, higher, or lower than the range.
In deciding the compensation philosophy, many factors come into play, including the
performance of the organization, its future plans, the availability of talent, the importance of the
role, the reputation of the organization, geography, etc. For example, if an organization is not
planning to grow, it may not want to pay at the higher end of the pay range for a role, however if
the organization needs to hire a role that is critical in its stage of growth/decline, it may be willing
Page
50 of 73
to pay a premium for the right talent. Benefits and variable pay are other components that
organizations work with to get the total compensation to the desired level. These are over and
above the base pay.
Here are a few other factors that determine your pay. Please note that this is just an indicative
list:
Organizations Reputation: An organization with a great reputation may be able to attract the
right talent even at the lower end of the range. Similarly, an organization thats not respected in
the market may not be able to attract the right talent even beyond the range.
Supply and Demand of Talent: If a particular city has an exploding number of engineers, then
the role does not need to be hired at a premium. The talent is easily available and since the
supply is more than the demand, the salary ranges could be very wide. The opposite is true too
for a position that is on high demand but on low supply.
Experience and Education: Although this may not be explicitly stated, the number of years of
experience and education, especially if you have graduated from an elite institution, can have
an influence on your starting salary. However, these could also make you overqualified for a job.
You only need to exceed the requirements a tad!
Performance: (Yours and the companys.) Pay for performance is probably the most
commonly heard term, when salary is discussed. If you are an exceptional performer, your
increment will take that into consideration and get you closer to the higher end of the range,
while a low performer may not see any increment. Similarly, if the company is doing well and
has a profit sharing model, employees may reap benefits from the companys performance.
Page
51 of 73
3.3 THE EFFEVTIVENESS OF REWARD SYSTEMS IN DIFFERENT

CONTEXT
Reward system can be described as the mix of intrinsic and extrinsic rewards offered by the
employer in an organization. This system comprises of the integrated processes, policies,
practices, as well as administrative approaches for implementing the system, within the design
of the human resources strategy. Different companies use different reward system, and below
are some of them under varying contexts. Employee bonus systems are good strategies, which
can be used to initiate actual motivation. In relation to monetary aspect, bonus systems take into
consideration factors like customer service, attendance, quality, group and individual
performance. Bonus systems also increase employee motivation, as well as output. To some
degree it enhances employees morale and also boosts their self-esteem. As a matter of fact, a
well-orchestrated bonus scheme can improve workers retention, which will help the company to
keep the best employees. Salary raise is another reward system, which is considered among
one of the most critical motivator for workers. In fact, it is key motivation factor, behind a
workers performance. In addition to this, promotion also falls under the types of reward system,
whereby a company rewards its worker, through moving them from one job position to a notch
higher. This reward system improves workers job satisfaction and morale. An improved
performance is a sign of effectiveness of a good reward system. It helps the worker to even
perform better in the workplace, so as to get an extra reward from the company. Reward system
also increases profits of a company, through hard work and honesty of company workers.
Moreover, it helps to create a good working environment, as well as facilitating the organization
to retain talented employees. ( Nelson, 2012)
Purposes of Reward Systems
Reward systems serve several purposes in organizations. Effective reward systems help an
organization be more competitive, retain key employees, and reduce turnover. Reward systems
also can enhance employee motivation and reinforce the image of an organization among key
stakeholders or future employees.
Page
52 of 73
People are the most important resource for organizational competitiveness, and keeping them
on the job is a key task for any manager. Competition to attract and keep the best employees is
intense. For people looking for a career opportunity, thats great news, but as a manager of an
organization needing to keep the best and brightest, it is a challenge. It may be even harder in
the nonprofit and public sectors where flexibility in providing financial rewards may be more
limited than in a commercial context. Retaining employees saves money on retraining costs,
improves the consistency of services, and allows for relationships to develop between clients
and the organization. In addition, proper rewards systems can reduce absences. Absences
cause innumerable headaches for managers. Instructors who dont show up, too few staff
members at busy times, and the lack of a cleanup crew can all increase workplace stress.
Absences not only affect the manager but also fellow employees who need to pick up the slack
and clients who feel the brunt of too few employees on site.
As suggested earlier, understanding who, what, and when to reward can improve employees
performance. However, the improper use of rewards can have a debilitating effect on employee
performance. Managers need to understand their employees perceptions of the importance and
fairness of the reward and then clearly communicate what needs to be done to receive the
reward.
Effective use of rewards can encourage employees to gain the skills that are necessary to help
them and the organization grow. This can also increase their desire to continue being part of the
organization. For example, an organization can pay and provide time off for employees who
want to take advanced courses in an area that is valuable for the organization. Some
organizations may even provide time off or support to help employees advance their own
personal goals or skill sets.
Ideally, an organization wants employees who not only show up to work but are excited about
being there as well. This passion for work has been referred to as affective commitment.
Although research is somewhat preliminary, there is some indication that affective commitment
can be strengthened by rewards that enhance employee perceptions of being supported and
having control of the work situation.
Finally, reward systems can also help with recruiting efforts. Just as happy customers may be
the best advertisement for a particular product, happy employees are often a great tool for
recruiting new employees and making the organization a workplace of choice. Think about the
kind of job you want. Often you will easily be able to identify an organization that stands above
Page
53 of 73
the others as a great place to work. As a consequence of this, the organization can attract the
best and brightest, creating a virtuous circle whereby it becomes an even more attractive
workplace. Hopefully you can see that establishing the right reward structure for an organization
is critical to its success. The following sections delve into the details of various reward
structures.
3.4 THE METHODS ORGANIZATIONS USE TO MONITOR EMPLOYEE

PERFORMANCE
Why is it important to monitor performance?
It as long been suggested and proven by research that effective and clear objectives can result
in the improvement of employee performance by as much as 30%. All successful organizations
known that effective performing employees means a successful business. Hence ensuring that
employees are performing at their best in vital for any organization in a competitive market
place. It is therefore critical that the performance of employees be monitored to ensure
consistently high quality.
There are five ways to monitor employee performance.
Number 1: Watch employees work. One of the most effective ways to monitor an employee's
performance is with your own eyes. Watching an employee perform a task will tell you more
Page
54 of 73
much about that employee's performance than just about any batch of data removed from the
action. Especially if you are having difficulties helping an employee succeed with a particular
task, watch that employee while he does the task. You'll find out exactly what's going wrong and
how he can do it better.
The second way to monitor performance is ask for an account. In every one-on-one
conversation with every employee, you need to be asking for an account of what that person
has done since your last conversation: "What concrete actions did you take? Did you meet the
clearly spelled-out expectations?" Then you need to listen very carefully, make judgments, and
ask more probing questions. Asking for an account is the method of holding a person
accountable that will come naturally if you are having regular one-on-one conversations.
The third way to monitor performance is to ask employees to use self-monitoring tools to help
you keep track of their actions. They can use project plans, checklists, and activity logs.
Employees can monitor whether they are meeting goals and deadlines laid out in a project plan,
they can make notations within a checklist as they are accomplishing tasks, they can report to
you at regular intervals. Activity logs are diaries that employees can keep, where they can
actually note contemporaneously exactly what they're doing all day, including breaks or
interruptions. Every time an employee moves on to a new activity, if he or she is using an
activity log, the employee makes a note of what he or she is doing and when the activity began.
The fourth way to monitor performance is to review work in progress on a regular basis. That
means you need to check your employees' work carefully in process along the way. If an
employee is not responsible for producing a tangible end product, then watching that employee
work is the same thing as reviewing the work in progress. But if she is responsible for an end
product, then you can spot-check the work that person is doing on an ongoing basis. For
example,
if the employee manages a database, you might spot-check the records. If the employee writes
reports, you could spot-check drafts of reports. If the employee makes phone calls, you could
record them and listen to a random sample. If the employee makes widgets, you could check
some half-done widgets and see how they look. You can't actually keep track of everything
every employee does, but if you check random samples on a regular basis it creates a form of
monitoring that will get employees to keep closer track of their own work.
Of course the fifth way to monitor performance is the one that most managers rely on
inadvertently: hearsay. Well I call it asking around a little because you are going to get hearsay
about how your employees are doing. The question is, do you become proactive about it? Do
you go out and gather intelligence? Ask customers, vendors, coworkers, ask other managers
about the interactions they're having with your employees. Always ask questions about your
employee's work, never about the person. Don't ask for evaluations, but ask for descriptions.
Don't ask for impressions, but ask for details. And don't believe everything you hear; remember
the unverified statement of a third party introduced to prove the truth of the matter asserted is
hearsay. But if you're gathering intelligence, if you're asking around, the more you keep your ear
to the ground, the more you'll know which sources can be trusted. And of course if you're doing
all five methods of monitoring performance then the hearsay you get won't be hearsay at all
because you'll have other evidence with which to verify.
Page
55 of 73
4.1. THE REASONS FOR CESSATION OF EMPLOYMENT WITH AN

ORGANIZATIONS
Cessation of employment can be simply defined as either the employee leaving the organisation
for his personal reasons or the organisation terminating the employment for any reason. When it
comes to employees willing resigning from work, the reason, most of the time if de-motivation.
Mrs. Susan M. Heathfield who is an HR expert, mentions 10 reasons why people leave
companies. Those are,
1. Relationship with boss
2. Bored and unchallenged by the work itself
3. Relationships with co-workers
4. Opportunities to use skills and abilities
5. Contribution of work to thesbusiness goals
6. Autonomy and independence
7. Meaningfulness of job
8s financial stability
9. Overall corporate culture
Page
56 of 73
10. Managementsrecognition of employee job performance And there are the reasons for the
company to terminate the employees from their work. Mrs. Susan M. Heathfield presents top
five reasons why the people are being terminated.
Those are,
1. An employee lacks integrity and you have caught him or her in repeated lies or underhanded
actions.
2. The employee cant do the job.
3. The employee demonstrates that he/she doesnt fit the companys culture
4. The employee fails to keep commitments.
5. The employee behaves unethically and ignores the company code of conduct.
4.2. THE EMPLOYMENT EXIT PROCEDURES USED BY TWO

ORGANIZATIONS
the employment exit procedures used by two Organizations
According to the hand book Exit procedure published in NHS Shetland website
(http://www.shb.scot.nhs.uk/board/policies/hr-ExitProcedure.pdf), exit procedure in NHS
Shetland involves 4 steps. Those are,
Processing resignation
Exit interviews
Reference request
Review Once a resignation is submitted, the HR department will process it and will
confirm the last working day to the employee. And his line managers will also be notified and if
there is any unfinished work to be done, the line manager will be taking responsibility of them to
allocate them to another person. Then there will an exit interview to inquire why the employee
has decided to leave and the information will be used to improve the organization if theres
anything that needs change.
Page
57 of 73
Liner managers will provide personal reference to the employees if they wish to get
reference from the company when they are applying for new positions. And finally the managers
and the HR department will review the policy of exit and will make any changes if they identify
any needs. And the other company, Pizza hut, uses a very simple exit procedure. The employee
has to give 2 weeks notice to the line manager. The manager will try to identify the reasons of
the resignation and will try to retain the employee by making a positive idea.
Employee Exit Procedure
The following checklist was designed to assist in the employee separation process. It could also
be used for employees beginning LNR leaves of absence. While some of the items listed will not
be applicable to all situations, the checklist should be helpful in suggesting areas of concern
when employees leave the LNRInstitute. The checklist should be retained by the
LNRAdministrative Manager for one year after completion for future reference.
On or before an employee's last day:
Please have the employee contact the LNRAdministrative Manager to discuss their case
and answer any concerns.
The LNRAdministrative Manager will (if employee is separating voluntarily) request a

letter of resignation. This letter provides documentation of the employee's intention to
resign, allowing the department to post and refill the position more efficiently. It should
contain the last day of active work, the last day on the payroll, and the reason for
leaving.
Employees leaving LNRwill be advised to schedule a meeting to review information

related to benefits, such as TRS funds, COBRA Insurance, Employee Reimbursement
Accounts, etc. A personal meeting with an NYU Benefit's Representative is
recommended. The NYU Benefit's Office is located at One Park Avenue, 11th Floor and
can be contacted at (212) 404-3777 for more information.
The Skirball Administrative Manager will prepare a CPP terminating the employee,
process it according to NYU guidelines, and send the CPP to the NYU Compensation
Office with a copy of pertinent correspondence (such as a copy of the resignation letter).
Payroll will be notified by the employing department of any remaining accrued vacation
hours. An address for mailing payment should be stated by the employee at this time to
ensure payment is not delayed.
It is also advisable that you notify your department of a forwarding address for W-2
forms (send to NYU Compensation and the NYU Payroll Department)
Page
58 of 73
Project Assistants should advise employee to:
Contact the LNRAdministrative Manager to discuss the case and answer any concerns.
Contact NYU, Benefit Services regarding continuation/conversion of benefits
Contact Mail Services regarding new mailing address
Project Assistants should arrange for the return of:
Keys (Department retains)
ID Badge (Department delivers to the NYU Security Office)
AT&T card: Return to Department
University credit cards: return to the LNRInstitute Financial Department
Procurement cards: Return to Purchasing, "Attn: Procurement Cards"
Travel Advance Accounts: Notify Voucher Audit/Travel, Division of Financial Affairs, to

close account
Department Equipment (Department retains)
Parking permits (return to Transportation and Mail Services)
Reference manuals (department retains)
Library materials (return to appropriate library)
Uniforms (department retains)
As soon as possible after employee's last day, as appropriate:
Remove the employee from the LNRPhone Directory
Cancel departmental computer passwords and computer accounts (at departmental

discretion) by contacting Joshua Hart at the LNRIT Services Office
Cancel signature authorization (send to the LNRFinance Manager directly)
Cancel subscriptions (at departmental discretion)
Page
59 of 73
Employee exit management is the process used within many businesses to terminate
employees contracts in a professional manner. It applies to employees who have resigned and
those that have been terminated by the company.
When an employee is terminated there are a number of considerations that an organization
needs to make in order to cleanly end the relationship between the company and the employee.
The company as a legal entity has a responsibility to the employee which may extend beyond
the period of employment and this is the primary focus of the exit procedure.[1]
As part of computer security, the process will also ensure that access privileges are revoked
when a person leaves, and may also cover other issues such as the recovery of equipment,
keys and credit cards to ensure that security integrity is maintained.
Termination of Contract
Employees may terminate their contract by resigning or an employer may terminate the contract
by dismissing an employee.
Short term Employment
Short term employment is when an employee is hired for less than one year. These will normally
end automatically once the end date is reached. However, the employer may wish to end the
contract earlier or extend the contract
Temporary Contract
A temporary contract is usually around 3 months long. Employers may recruit temporary
employees during busy periods such as Christmas. At the end of the temporary contract the
employer may wish to offer you a permanent position or extend the temporary contract.
Temporary contract will also automatically end once the end date is reached.
Contractor basis
Employees maybe hired on a contractor basis for the completing of a certain task. Once the
task is completed or the event takes place the contract ends.this type of contract employees
falls under seasonal works.
Dismissal
Dismissal is when you end the contract of an employee. This must be done in a fair way.There
are different types of dismissal
1. Fair dismissal- Based on the reason and the process of dismissal
2. Unfair dismissal- Based on the reason and the process of dismissal
Page
60 of 73
3. Constructive dismissal- This is when a serious breach ofcontract has been carried out
and therefore the employee must resign in response to the employers conduct.
1. Wrongful dismissal- This is where you break the terms of an employees contract in the
dismissal process, e.g. dismissing someone without giving them proper notice.
If the employer dismisses you from 6 April 2009 onwards, they should follow the procedures
which are laid out in the Acas Code of Practice on disciplinary and grievance procedures.
The procedure should have the following steps:[4]
1. Letter- The employer should send you a formal letter explaining the situation.
2. Meeting- The letter should be followed by a meeting to discuss everything face to face.
3. Verdict- The employer should then write to you expressing their final decision.
4. Appeal- You then have the right to appeal against your employers decisionor Conduct
or Performance Reasons
An employer may dismiss you if you are unable to complete the job to the required standard or
you have the capability to complete to a high standard but for some reason or another you are
unable to.
There is no specific process by law an employer must follow in order to dismiss an individual
however it must be carried out fairly.
Misconduct includes persistent lateness or unauthorized absence. It is based on serious
misconduct or gross misconduct. Serious misconduct includes poor performance for which the
employee should be provided with a formal warning which states that not improving could lead
to dismissal. Gross misconduct includes theft, physical violence, serious insubordination and
gross negligence for which the employee may be dismissed immediately.
Due to Illness
An employee maybe dismissed due to medical reasons. The employer must pay for the
employee whilst dismissed for a period not exceeding 20 weeks. The employer may wish to
provide the employee with alternative work for the period of time, which is suited to your medical
needs
Redundancy
Page
61 of 73
Redundancy is when you dismiss an employee because you no longer need anyone to do their
job.
Liquidation and Administration

Both company Liquidation and Administration can lead to the end of the company. Company
administration intention is to help the company repay its debts and avoid insolvency. Liquidation
is when the company is forced to sell all of its assets before the company vanishes as a whole.
This will result in the employees being made redundant. Youll normally be entitled to statutory
redundancy pay if youre an employee and youve been working for your current employer for 2
years or more.
Youll get
1. Half a week's pay for each full year you were under 22
2. One weeks pay for each full year you were 22 or older, but under 41
3. One and half weeks pay for each full year you were 41 or older
Length of service is capped at 20 years and weekly pay is capped at Rs.475. The maximum
amount of statutory redundancy pay is Rs.14,250.
Resignation
A resignation can be carried out verbally or in writing, it is a clear statement of you are leaving
the job.
Forced Resignation
Page
62 of 73
If you are being dismissed, a company will often offer you a compromise or settlement
agreement whereby they will pay you a certain amount of money in return for which you forego
the opportunity to bring any claims against them.
Where the employer's action breached a fundamental term of your contract and you resigned in
direct response soon afterwards then this may be constructive unfair dismissal and you will be
entitled to bring a claim for compensation.
Retirement
The period of a person's life during which he/she is no longer working, or the commencement of
that period.
Why do people retire?
There are various reasons why someone retires such as health issues - the employee may not
be able to work or be medically fit to work due to ill health. Another reason is the nature of work
for example employees whose jobs are physically demanding might retire earlier than others.
Employees may have personal demands such as caring for someone and therefore retire earlier
to fulfil responsibilities outside of work. Another key reason is community interests, employees
may want more time for volunteer work, sports, hobbies, family and travel.
4.3 CONSIDER THE IMPACT OF THE LEGAL AND REGULATORY

FRAMEWORK ON EMPLOYMENT CESSATION ARRANGEMENTS
Page
63 of 73
According to the legal framework of employment relations published by the university of

Cambridge, cessation of employment is directly impacted by laws and regulatory frameworks in
the UK. The job security is assured by the laws. This means that no employee will be terminated
from employment without any fair reason. If anything like that happens the employee has the
right to take legal actions against the employer. And the other is that, any kinds of
discriminations regarding the gender, race, nationality or ethnic are prohibited inside the
company. No employee can be dismissed or terminated owing to his gender, race, ethnicity,
nationality or colour. And also no employees can be terminated owing to any physical conditions
like being disabled or pregnant or any kind of those. There are laws and acts for the company to
support and pay pension to the employees when the employees are retired
Legislation
Employment/labour standards outline the basic rights and responsibilities of the employer when
terminating the employment of an employee. Human rights legislation must also be considered.
An employer can terminate the employment of an employee at any time for any reason, as long
as it is not in violation of human rights or other employment legislation or the employment/labour
standards.
Leaves as defined by employment/labour standards
Human rights
Termination - when notice is not required
Termination - when notice is required
Leaves as defined by employment/labour standards

The employment/labour standards in all provinces/territories give employees some protection
from termination of employment while on maternity/pregnancy leave and parental leave and
prior to, or after, taking the leave to which they are entitled. An employer cannot terminate the
employment of an individual who is eligible for or on leave for reasons related to the leave. For
example, the employment of a pregnant employee cannot be terminated because she is
pregnant; a mother or father cannot be terminated from employment because he or she is
taking leave to care for the child.
An employer can terminate the employment of an employee who is on a leave, as long as the
pregnancy (or other reason a person is on leave) is not the reason for the termination. In other
words, an employer can terminate the employment of an employee on leave if the employer has
a legitimate or business reason for the termination. However, the employer will have to prove
that the termination was completely unrelated to the leave.
Check the employment/labour standards for your jurisdiction for the complete list of leaves that
are covered by the legislation.
Page
64 of 73
If, for legitimate or business reasons, you are considering terminating the employment of an
employee who is on a leave as defined in the employment/labour standards for your jurisdiction,
consult a lawyer about the best way to proceed.
Human rights
Human rights legislation protects individuals from a termination that is based on discrimination
as defined in the code/act.
Check the Human Rights Code/Act for your jurisdiction for a complete list of the factors that are
covered by this legislation.
All about Termination of a Contract, Termination of a Contract and Benefits and Wages,
Termination of a Contract and Labour Laws in Kenya on AfricaPay Kenya.
Termination of employment can be initiated by either of the parties to a contract of employment
(Employment Act, section 35 (1)). Lawful termination of employment under common law
includes:
Termination of employment by agreement: When the employer and employee agree to

bring a contract of employment to an end in accordance with an agreement. This may be
in case of terminating a contract of apprenticeship; where the period of training expires
then the contract will obviously come to an end.
Automatic termination: A contract of employment may be terminated automatically in

circumstances such as death or loss of business of the employer.
Termination of employment by the employee/resignation: This happens when an

employee due to material breach of the contract by the employer decides to resign from
his/her employment.
Termination of employment by an employer: An employer may also terminate the

employment of an employee but there is a need to comply with the provisions of the law
and contract relating to termination.
On what grounds can a contract of employment be terminated by an employer?

A contract of employment may be terminated by an employer on the following grounds:
By mutual agreement between the employer and the worker (Industrial Training Act,
section 13 (1) (a)).
By the employer when the employee dies before the expiration of the period of
employment.
Page
65 of 73
By the employer if the worker is found by medical examination to be unfit for

employment. Due to sickness or accident the employee becomes unable to carry out his
or her work (Employment Act, section 41(1)).
By the employer on the basis of misconduct of employee (Employment Act, section 44

(3))
What should an employer do if he or she wants to terminate a contract of employment?

A contract of employment may be terminated at any time by an employer who must give the
employee a period of notice of termination (e.g. at close of day in case of contract for daily
wages, one month or more in case of monthly pay contracts).
What form of notice should I give as an employer?
A termination notice shall be in writing. In case the employee does not understand the notice,
the employer is responsible to ensure that the notice is explained orally to the worker in a
language he/she understands (section 35 (2) (3)).
If the employee is employed on a daily wage contract, the notice is given at the close of
any day without notice.
If the employee is employed on a weekly pay or two-week basis the notice period shall
be one week or two weeks respectively, given in writing or payment of one weeks salary
in lieu of notice.
If the employee is employed on a monthly basis the notice period shall be 28 days and in
writing or payment of one months salary in lieu of notice.
In the case where a contract of employment provides that the notice of termination be
given for a greater period than one month, then there will be agreement in writing
between employer and employee for a longer notice and the agreed notice period shall
be of equal duration for both employer and the employee (section 35 (2)).
Can an employer terminate an employee immediately without allowing them to work

during the notice period? Does the law allow this?
In event the employer wants to terminate an employee without allowing her/him to serve the
notice period the employer will be required to pay the employee the amount that an employee
would have received if she/he had worked during the notice period. This is what is usually
referred to as payment in lieu of notice (section 36) also (section 38).
Section 36 provides for payment of equivalent salary in lieu of notice instead of serving the
notice. The length of notice will depend on the interval at which salary is paid.
Page
66 of 73
Must I, as an employer, pay for transportation after a contract of employment is

terminated?
The law is silent about this kind of payment.
What happens if an employee is terminated but they have outstanding leave they have
not taken?
In the case of accrued leave upon termination the employer shall pay an employee on a pro rata
basis an amount in cash for the accrued annual leave to which that employee is entitled (section
40 (1) (e)) - provided that it is taken not later than six months after the end of leave cycle or
twelve months after the end of leave cycle if (if the employee consented or extension is justified
by operational requirements) (section 28(4)).
Can an employer terminate a contract of employment without notice?
Yes. Either party to a contract of employment may terminate the contract without notice if that
party pays the other party a sum equal to the amount of remuneration which would have
accrued to the worker during the period of the notice (section 36).
Is a certificate of service and notice mandatory even when terminated on misconduct?
Yes. Both are mandatory regardless of the reason for termination, unless the period of service
of employee to employer has lasted less than four weeks (section 51).
Can I terminate an employee because I do not like her/him?
No. Under the law there are four grounds that may justify termination of the employment by the
employer and these are:
Misconduct.
Physical incapacity.
Poor performance.
Employers operational requirements/retrenchment.
An employer may also terminate an employee due to participation in an illegal strike. Therefore
for an employer to terminate an employee he/she should have a genuine reason as specified in
Page
67 of 73
section 45 (2) and section 46. An employee cannot be fired because an employer does not like
them - unless the grounds for this dislike are based on the above-mentioned factors.
What amounts to fair termination of employment?
In order for termination to be fair in the eyes of the law it has to be both substantively and
procedurally fair. The employer needs to have a valid and fair reason for termination.
Apart from this valid reason of termination the employer must follow fair procedures for
termination as are provided under the Employment Act, section 45 (2) and section 46.). In any
form of termination the employer is require to prove the reasons for the termination otherwise it
will be termed as unfair (section 45 (2)). The procedures for termination are different depending
on the reason for termination but they all have a common item - the right of an employee to be
heard before a termination decision is taken against an employee (section 41 (2)).
Am I to follow the procedure for termination even in cases where an employee is caught
red handed committing a serious misconduct, for example stealing?
Yes. Notwithstanding the serious misconduct of the employee, and the evidence available, the
law requires that procedures outlined under the law be followed. Failure to follow the procedure
will amount to summary dismissal, meaning an employee is terminated without being availed of
an opportunity to defend herself/himself before a fair disciplinary committee. In labour laws
summary dismissal amounts to unfair termination with consequences specified in section 47
and 49 (1) & (3).
Can I terminate an employee who is facing a criminal charge before a court of law?
No one can terminate or take disciplinary action against an employee who is facing the same
charges before a court of law unless the two charges are different or do not arise in the same
cause of action.
What are the likely consequences of unfair termination for an employer?
If the labour officer makes the decision that the summary dismissal or the termination of contract
of an employee is unjustified, he may recommend to the employer to pay the employee any or
all of the following:
The wages which the employee would have earned had the employee been given the
period of notice to which he was entitled under this Act or his contract of service.
Where dismissal terminates the contract before the completion of any service upon
which the employees wages became due, the proportion of the wage due for the period
of time for which the employee has worked; and any other loss consequent upon the
dismissal and arising between the date of dismissal and the date of expiry of the period
of notice referred to in paragraph (a) which the employee would have been entitled to by
virtue of the contract.
Page
68 of 73
The equivalent of a number of months wages or salary not exceeding twelve months
based on the gross monthly wage or salary of the employee at the time of dismissal.
Alternatively, the employer may have to reinstate the employee and treat the employee
in all respects as if the employees employment had not been terminated; or
Re-engage the employee in work comparable to that in which the employee was
employed prior to his/her dismissal, or other reasonably suitable work, at the same
wage.
CONCLUTION
To conclude it would be inaccurate to suggest that one approach has taken over from the
other, just as it would be wrong to suggest that one is modern, and the other old fashioned, and
that one is right and the other wrong. (Torrington, D. and Hall, L., 1995, p12). The prescription
for managing people may take various formulations such as the flexible organisation, the
empowered organisation, the learning organisation, the open company as well as human
resources management, but most of the key features are commonly aimed at the development
of a highly committed and adaptable work force. Organisations should aim to build the HRM
organisation by harnessing the co-operation and commitment of others through flexibility of
function, time, task and reward. However the HRM paradigm has to be treated with utmost
caution. The assumption on which it depends mean that only a few companies will find it
feasible, and even they will require a supporting set of structure.
To have a corporation-wide mutually reinforcing set of HRM policies in an organisation

operating in a highly diverse product market; and to create an organisational culture which
pursues both individualistic and teamwork policies at the same time is a very difficult task, if not
impossible. Today HRM is increasingly becoming a common term in the business world. Yet
how much substance lies behind this terminology is still a matter of debate. Opinions still vary
on the extent and pace of adoption of the real HRM and the kindest conclusion that can be
drawn is that the HR function has some way to go before it really becomes a part of the
management of the new millennium.Every employee has a valuable role to play. The
Page
69 of 73
emphasis is on helping individuals to work together. Workforce planning is part of this

strategic process, which looks at the long-term needs across the organisation.
Personal development plans enable every individual to grow both professionally and
personally within the business.
REFERENCES
http://www.businessdictionary.com/definition/employee-relations.html#ixzz4D8AXAcFC
http://www.oakbridgesconsulting.ca/blogs/what-difference-between-employee-relations-labourrelations-and-industrial-relations
http://www.differencebetween.com/difference-between-industrial-relations-and-vs-employeerelations/..
Garrick (1999). Informal Learning in the Workplace: unmasking human resource development,
Routledge Press, London.
Harrison, R (2002) (3rd Edition) Learning and Development: CIPD Publishing, London
http://www.education.vic.gov.au/hrweb/employcond/Pages/cess.aspx
https://en.wikipedia.org/wiki/Employee_exit_management
Page
70 of 73
http://hrcouncil.ca/hr-toolkit/keeping-people-termination.cfm
http://www.yourarticlelibrary.com/hrm/human-resource-management-meaning-objectives-scopeand-functions/35229/
Buchanan D, and Hucczynski A,(1991) OrganisationalBehaviour Prentice Hall, Padstow
Hawkins, P. (1994), The changing view of learning in Burgoyne, J., Pedler, M. and Boydell, T.,
Towards the Learning Company: Concepts and Practices, McGraw Hill, London.
Keep, E. (1989). Corporate training: the vital component? New Perspectives on Human
Resource Management, Routledge Press. London
Marchington, M. & Wilkinson, A. (1996) Core Personnel and Development IPD Publishing,
London.
Mullins, L (2005) (7th Edition) Management and OrganisationalBehaviour Prentice Hall, Pearson
Education, Edinburgh
Reader A, 1998, Strategic Human Resource Management, Sage Publications, Pitman, London
Reid, M. and Barrington, H. (1997). (5th edition) Training Interventions: Managing Employee
Development IPD Publishing, London.
https://hrdictionaryblog.com/2012/10/28/evolution-of-human-resource-management/commentpage-1/
http://management.about.com/od/policiesandprocedures/g/manager1.htm
http://smallbusiness.chron.com/responsibilities-line-managers-hr-35205.html
http://www.ehow.com/facts_5732337_difference-resource-managers-line-managers_.html
http://samples.jbpub.com/9781449653293/27829
(https://globaljournals.org/GJMBR_Volume12/5-Human-Resource-Management-Theory.pdf)
http://www.buzzle.com/articles/functions-of-human-resource-management.html
http://www.glennmartin.com.au/articles/Linemgrstudy.pdf]
International Civil Service Commission. 2000. A framework for Human Resource Management ]
Guest, D (1999) Human Resource ManagementThe Workers Verdict Human Resource
Management Journal, London, 1999.Vol.9, Iss. 3;
Nixon, B. (2004) Creating a cultural revolution: the 21st century challenge for HRD Training
Journal, Ely: Oct 2004
https://www.google.lk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF8#q=hrm+assignment+.HTML
Page
71 of 73
THE END
Page
72 of 73
Page
73 of 73

Human Resources Management

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Human Resources Management

Încărcat de

Drepturi de autor:

Formate disponibile

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

1.1 DISTINGUISH BETWEEN PERSONAL MANAGEMENT AND HUMAN

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

1.2 ACESS THE FUNCTION OF THE HUMAN RESOURCE

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

Three Basic Functions of Human Resource Management

HUMAN RESOURSE MANAGEMENT

2. Training and Development

HUMAN RESOURSE MANAGEMENT

School Based Programmes

HUMAN RESOURSE MANAGEMENT

The primary responsibilities of a human resource manager are:

HUMAN RESOURSE MANAGEMENT

1.3 Evaluate the role and responsibilities of line managers In Human

day-to-day people management

managing operational costs

providing technical expertise

allocating work and rotas

monitoring work and checking quality

dealing with customers/clients

measuring operational performance

Developing their people.

HUMAN RESOURSE MANAGEMENT

Line Managers are responsible for:

Setting realistic and measurable standards of performance to include an action plan,

Setting a reasonable time frame within which improvement is expected.

Setting up a regular progress review meeting during the review period.

Providing reasonable support, adequate supervision and encouragement so all

Trying to identify any problems or reasons for the underperformance.

HUMAN RESOURSE MANAGEMENT

By devolving responsibility for HR issues, line

HUMAN RESOURSE MANAGEMENT

Common work activities include:

HUMAN RESOURSE MANAGEMENT

1.4 ANALYZE THE IMPACT OF THE LEGAL AND

HUMAN RESOURSE MANAGEMENT

Terms and Conditions of Employment in Sri Lanka

Classification of Labour Laws

HUMAN RESOURSE MANAGEMENT

Statutes on regulation of wages and conditions

Employee holiday Act No 06 of 1959

Statutes on employee welfare

Workmens Compensation Ordinance No 19 of 1934

Statutes on industrial relations

Trade Union Ordinance No 14 of 1935

Statutes on obtaining jobs & training

Service contract Ordinance no 11 of 1865

Statutes on women, young person and children

Mines ( prohibition of female labour underground ) Ordinance No 13 of 1937

HUMAN RESOURSE MANAGEMENT

4. Laws relating to terms and conditions of Employment

HUMAN RESOURSE MANAGEMENT

iii. Industrial Disputes Act

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

HUMAN RESOURSE MANAGEMENT

These Wages boards comprise an equal number of representatives of employers and

Shop and Office Employees