History of Human Resources Management

The history of Human Resources Management did not begin at the moment when Dave Ulrich published his first book about Human Resources. He discovered the importance of Human Resources Management for successful organizations but the people management was crucial even in ancient China. The HR history is about the evolution of first communes and growth of first ancient societies.

The army was the first driver of innovations. A nation without a strong army was overtaken by neighbors, and it just made an importance of a strong army visible to each citizen. A successful command requires strong, brave and smart leaders who engage and share a vision of the victory. It designed and developed first procedures for the outstanding selection of new hires and leaders. It had resources to invest in innovations. The first successful HR practices in the history can be found in ancient armies. They required a good work organization of jobs and tasks, even they used the workforce with no education and knowledge.

Italian Machiavelli (the author of The Emperor and other books) was not writing just about the art of the power. He was writing about managing all kinds of resources including the people, reward and recognition and various leadership styles. He was clearly splitting roles in the society; securing the position of the emperor. That is a book about Human Resources Management. However, most recommended practices would not be allowed and preferred today. He has to be mentioned in the HR Management history. (more on the HR practices in ancient China till the beginning of 20th century).

We tend to recognize just the modern Human Resources Management as the best competitive businesses practice it today. However, we ignore the long list of successful organizations from the history. Many successful companies had been running impressive leadership development procedures to protect its future (and they were able to do so for centuries). Nowadays, we know that a strong respected and widely recognized HR Organization makes a difference. It can create a great company that wins the market wars. The modern Human Resources Management is a business function, which manages, leads, facilitates and provides tools for the human capital management in the enterprise (more on Evolution of Human Resources).

A modern contemporary HR Organization designs and develops strategic processes and procedures; it runs difficult and complex communication campaigns as the organization attracts the best talents from the job market; it retains them with the attractive compensation packages, or it develops them in talent development programs. On the other hand, the British Honorable East India Corporation was running complicated procedures to identify new leaders who could conquer and lead business opportunities in new areas. It just followed inventions and innovations introduced by the British Navy in the 16th century.

The modern history of Human Resources as we know it starts with the British Industrial Revolution. The foundation of large factories increased a demand for the workforce significantly. It was in the 18th century, and it is the moment when the evolution of new people management practices begins. It is the important landmark in the history of Human Resources. The rapid development of new industrial approaches and new inventions to work changed the world dramatically. The quick and cheap production became a priority for many industries.

The factories hired thousands of workers, who worked up to 16 hours a day. Soon, many entrepreneurs discovered the fact that the satisfaction of employees influences the performance and productivity. Satisfied employees were more efficient than the rest of the workforce, and they can produce more products than depressed employees. As a result, many factories started to introduce voluntary programs for employees to increase their comfort and satisfaction. Moreover, the government began to intervene to introduce some fundamental human rights and the work safety legislation.

The second rapid development of Human Resources started at the beginning of the 20th century. Most organizations launched the Personnel Management(more on Personnel Management). The personnel department had large responsibilities however it was still a service department. It was dealing with all employee related issues, and it was responsible for the full compliance with the newly introduced law requirements.

It had the responsibility for the implementation of different social and workplace safety programs. Everything was focused on the productivity of employees. The regular productivity increments were the key measure for the management of employees. The significant change was introduced after the 2nd World War because armies developed many training programs for new soldiers. After the Second World War, the Training Department became a widely recognized and respected unit in the Personnel Management Department.

Moreover, the trade unions evolved almost at the same moment as the Personnel Management. The trade unions changed the rules of the game. So far we are not sure about the positive impact of trade unions. However, they played a significant role in improving the role of employees in the organization. The employer got a reliable partner to discuss with. Trade unions introduced many improvements at no significant costs for the business. Today, trade unions are not as strong as they were used to be, but many organizations still benefit or suffer from a strong presence of trade unions in their factories.

The introduction of the HR Management has begun in 70's of the 20th century (more on Early HR Management). New technologies allowed the growth of large multinational organizations; that was the moment when the new wave of globalization has begun. The Personnel Departments turned into Human Resources Departments. They started to manage processes and procedures around the globalized workforce. From that times, most HR Functions are running complex HRIS solutions, which make information about employees available anywhere and anytime to HR Professionals.

The second significant change in the history of the HR Management was the introduction of the HR Business Partnering Model (more on Advanced HR Management, HR Roles and Responsibilities and HR Model). The demand of the organizations changed dramatically as economies of the wealthy western countries shifted towards the services economies. The role of Human Resources has changed significantly because the Leadership Development and Succession Planning became crucial processes securing the future of the business. Also, the quality of provided HR services became the significant competitive advantage.

Nowadays, managers and leaders have to think globally; they have to understand employees coming from completely different cultural backgrounds. They have to manage the global corporate culture. They have to find values that energize employees around the Globe.

Reference: (http://www.creativehrm.com/hr-management-history.html)

Different between Human Resource Management and Personal Management

HRM vs Personnel Management

Some say that there are no basic differences between Human Resource Management and Personnel management. These experts say that the two terms – HRM and Personnel management – have no difference in their meaning, and can be used interchangeably. Well, there are many experts who have come up with many differences between the two.

Personnel management is regarded to be more administrative in nature. Personnel management basically deals with the employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organization’s success.

Human Resources Management is spoken about in a much broader sense than Personnel Management. It has been said that HRM incorporates and develops personnel management skills. It is Human Resources Management that develops a team of employees for an organization.

Personnel management can be considered as reactive, in the sense that it provides concerns and demands as they are presented. On the contrary, Human resources Management can be stated to be proactive, as it pertains to the continuous development of policies and functions for improving a company’s workforce.

Whereas personnel management is independent from an organization, the Human Resources Management is an integral part of a company or an organization.

One can also come across differences in motivational aspects. While Personnel management tends to motivate the employees with compensations, rewards and bonuses, Human Resources Management tends to provide motivation through human resources, effective strategies for facing challenges, work groups, and job creativity.

Personnel management focuses on administrating people. On the contrary, the prime focus of Human Resources Development is to build a dynamic culture.

Summary

1. Personnel management deals with employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organization’s success.

2. HRM basically deals with developing personnel management skills. It is Human Resources Management that develops a team of employees for an organization.

3. While Personnel management is considered to be reactive, Human Resources Management is stated to be proactive.

4. Personnel management focuses on administrating people or employees. On the other hand, the prime focus of Human Resources Development is to build a dynamic culture.

5. Personnel management is independent from an organization. On the contrary, Human Resources Management forms an integral part of a company or an organization.

Reference (www.differencebetween.net/.)

Reference (www.differencebetween.net/.)

Termination of Employment of workmen – Labour Law Sri Lanka

Termination of Employment of workmen – Labour Law Sri Lanka

Termination of Employment Branch

The main objective of this unit is implementation and execution Termination of Employment of Workmen (special provision)  Act no 45 of 1971. Amendments 1.  Act No. 04 of 1976 2.  Act No. 51 of 1988 3.  Act No. 12 of 2003 4.  Act No. 20 of 2008 Section 2  of the Termination of Employment Act either the prior written consent of the employee or the prior written approval of the Commissioner of Labour is required to terminate the services of an employee. Employers should apply for the approval of Labour Commissioner under section 2 of the Termination of Employment of Workman (special provisions) Act No 45 of 1971 for the purpose of termination of service of all employees due to closure of establishment or removal of the certain number of employees in consequence of winding up of some sections or retrenchment. (Under Sec. 2(2)) Where an employer terminates the scheduled employment of workman in contravention of the provision of this act, in such case employees are eligible for apply relief act. (Under Sec. 6 and 6 A Covered Employment This Act covers the workmen employed in the Private Sector only. The employees in the state corporations, statutory Bodies, Authorities, Institutions vested with the Government, Provincial Councils, Local government Institutions and Co-operative Establishments are not covered by the Act. In case of any employee dismissed on disciplinary ground (where the cause of dismissal on disciplinary grounds has been notified in writing or verbally within two days from termination) is not entitled to claim for relief under the Act. Also the employees who have resigned from service or whose contract period of employment is concluded upon reaching the retirement age in terms of any specific employment agreement wherein the retirement age of an employee is clearly mentioned are not eligible for redress under the Act. The number of employees in the workplace as at the date of termination or during the six months period preceding to the date should be an average of fifteen (15) Minimum of 180 days service during the first year of employment should have been completed at the time of termination of employment. A person whose employment is covered under the following acts, can make an application under the above Act. i. Shop & Office Employees Act. ii. Wages Boards Ordinance. iii. Factory Ordinance. Instructions for apply relief under termination of employment of workman (special provision) act no 45 of 1971;\ Guidelines for employers to apply approval and employees to apply relief under the termination act. There is no certain formatted application to submit application But it is essential to indicate following particulars in the application Full name of the employee Permanent Address Date of appointment Designation Date of the birth of the employee National Identity card number Last drawn salary (additional allowances should indicate separately) Correct name of the establishment Correct  address of the establishment Retiring  Age applicable to establishment Total number of employees in the work place Reasons for termination Date of termination of Employment Registered name of the establishment Address of the establishment Name and address of the Directors Signature of the applicant The workman should submit his application to the Commissioner of Labour within 06 Months from the date of termination. Reference (http://www.labourdept.gov.lk)

Introduction to Human Resource Management

Introduction to Human Resource Management

Human Resource Management (HRM) is an operation in companies designed to maximize employee performance in order to meet the employer's strategic goals and objectives. More precisely, HRM focuses on management of people within companies, emphasizing on policies and systems.

In short, HRM is the process of recruiting, selecting employees, providing proper orientation and induction, imparting proper training and developing skills.

HRM also includes employee assessment like performance appraisal, facilitating proper compensation and benefits, encouragement, maintaining proper relations with labor and with trade unions, and taking care of employee safety, welfare and health by complying with labor laws of the state or country concerned.

The Scope of HRM

The scope of HRM is very wide. It consists of all the functions that come under the banner of human resource management. The different functions are as follows;

 Human Resources Planning

It is the process by which a company identifies how many positions are vacant and whether the company has excess staff or shortage of staff and subsequently deals with this need of excess or shortage.

Job Analysis Design

Job analysis can be defined as the process of noticing and regulating in detail the particular job duties and requirements and the relative importance of these duties for a given job.

Job analysis design is a process of designing jobs where evaluations are made regarding the data collected on a job. It gives an elaborate description about each and every job in the company.

Recruitment and Selection

With respect to the information collected from job analysis, the company prepares advertisements and publishes them on various social media platforms. This is known as recruitment.

A number of applications are received after the advertisement is presented, interviews are conducted and the deserving employees are selected. Thus, recruitment and selection is yet another essential area of HRM.

Orientation and Induction

After the employees are selected, an induction or orientation program is organized. The employees are updated about the background of the company as well as culture, values, and work ethics of the company and they are also introduced to the other employees.

Training and Development

Employees have to undergo a training program, which assists them to put up a better performance on the job. Sometimes, training is also conducted for currently working experienced staff so as to help them improve their skills further. This is known as refresher training.

Performance Appraisal

After the employees have put in around 1 year of service, performance appraisal is organized in order to check their performance. On the basis of these appraisals, future promotions, incentives, and increments in salary are decided.

Compensation,Planning and Remuneration

Under compensation planning and remuneration, various rules and regulations regarding compensation and related aspects are taken care of. It is the duty of the HR department to look into remuneration and compensation planning.

Features of HRMI

Human Resource Management as a discipline includes the following features −

It is pervasive in nature, as it is present in all industries.

It focuses on outcomes and not on rules.

It helps employees develop and groom their potential completely.

It motivates employees to give their best to the company.

It is all about people at work, as individuals as well as in groups.

It tries to put people on assigned tasks in order to have good production or results.

It helps a company achieve its goals in the future by facilitating work for competent and well-motivated employees.

It approaches to build and maintain cordial relationship among people working at various levels in the company.

Basically, we can say that HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

Reference (https://www.tutorialspoint.com/human_resource_management/human_resource_management_introduction.htm)

How Sri Lankan employee engaged with Sri Lankan labour law

How Sri Lankan employee engaged with Sri Lankan labour law

Sri Lanka Labour law is governed by several Acts and Statutes. The Shop and Office Employees (Regulation of Employment and Remuneration) Act No 19 of 1954, covers the employees in all shops and offices in Sri Lanka, except for any bazar or sale of work for charitable or other purposes carried on for a period of one month or less, or for a greater period with the approval of the Minister of Labour, any business undertaken in connection with funerals, members of tutorial staff of schools, or watchers and caretakers.

Under the Act, an employee is eligible to several types of holidays. They are:

Weekly holiday
Annual leave
Casual leave (sick leave)
Public holiday
Full moon Poya holiday
Maternity leave Weekly holiday

An employee who works for 28 hours or more in a given week is eligible for one and half days as a weekly holiday with full remuneration, which should be granted on such week or the week immediately succeeding. Generally, such leave is granted as half day on Saturday and a full day on Sunday. In practice, many organizations provide the complete day as a holiday on Saturday.

Annual leave

The employee is permitted to 14 days of annual leave complete with the full salary for each concluded year of service. Hence, employees are not entitled to annual leave on the first year of employment. Annual leave for the second year of employment is accrued based on the date the employee joined service. The annual leave accrual is set out below.
Between January 1 and March 31 of the previous year – 14 days
Between April 1 and June 30 of the previous year – 10 days
Between July 1 and September 30 of the previous year – 7 days
Between October 1 and December 31 of the previous year – 4 daysCasual leave/ sick leave

The second year onwards the employee will be eligible for 7 days of casual leave. On the first year of employment, the employee is entitled to one casual leave for every two complete months of service.
Statutory holiday

In terms of the Act, the following days have been declared as public holidays with pay for the shop and office employees. These are also commonly referred to as “Mercantile Holidays”

Thai Pongal day
Independence day
Sinhala & Tamil New Year
Day preceding Sinhala & Tamil New Year
May Day
Day after Vesak full moon Poya
Prophet Mohammed’s Birthday
Christmas

An employee who is required to engage in work on a public holiday is paid no less than twice the daily salary, or a substitute holiday on any day prior to 31st December of the given year.

Full Moon Poya holiday

Employees are granted a holiday on full moon poya days. The days on which poya holidays are granted are published in the Gazette every year. An employee who is required to engage in work on a poya day is paid no less than one and a half times the daily salary.

Maternity leave

For the birth of the first and second child, a female employee is entitled to 84 days of paid leave, which includes 14 days of pre-confinement leave and 70 days after confinement. For the birth of the third child and any subsequent child, the leave entitlement is 42 days (including 14 days of pre-confinement leave and 28 days after confinement). Maternity leave is considered without taking into account the weekly holidays, public holidays and full moon poya holidays.
Reference: (D L & F Seram - Attorney at law)

General Labour Law

General Labour Laws

An outline of all the applicable and general laws in Sri Lanka, employees fall under the Shop and office act in English, Sinhala and Tamil.

Employees who are occupied in an office or shop will be administered by the Shop and Office Employees (Regulation of Employment and Remuneration Act No.19 of 1954 ("SOEA")

Reference

(D L & F Seram - Attorney at law)

Happy Employees within the Sri Lankan Legislation

Sri Lankan Labor Law history

The employment relationship in Sri Lanka is based on the Employer-Employee relationship, which over the years has gained protection under the law. The common Law concept of the contract based on a Master and servant relationship under the Roman Dutch Law, which was later influenced by the English Law concepts. The influence of English Law was seen mostly in the area of the rights and liabilities of the Master and servant relationship in regard to third parties.

The relationship comes into being when a person lets out his services to another who hires them for a fee. Under the Roman Dutch Law the relationship between the Employer and the Employee as treated as a pure contract between equals as free agents. However, such a description does not divulge the realities of the situation in relation to social and economic factors as the relationship in most instances in not one between equals as the economic disparity between the parties would often show that the contract is not one between equals. The contract of employment under the Roman Dutch Law imposed rights and duties on both parties for the breach of which remedies falling short of specific performance were available.