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Control Systems



System Approach



Postgraduate Diploma in Management (PGDM) Leading to the Degree in Master of Business Administration
Semester I 2007 Examination
PGDM 1132 Principles of Management



10 commandments AMA


Lecture:- Understanding communication



Lecture:-Understanding communication Technology



Lecture:- Gentlemen



Lecture:-Communication Process


Lecture:-Formal Vs. Informal Communication



Lecture :-Systems Approach



Lecture :-Organizational Environment

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French & Raven’s Five bases of Power

In a notable study of power conducted by social psychologists John French and Bertam Raven in 1959 power is divided into five separate and distinct forms. As we know leadership and power are closely linked. This idea shows how the different forms of power affect one’s leadership and success. This idea is used often in organizational communication and throughout the workforce. “The French-Raven power forms are introduced with consideration of the level of observability and the extent to which power is dependent or independent of structural conditions. Dependency refers to the degree of internalization that occurs among person’s subject to social control. Using these considerations it is possible to link personal processes to structural conditions”. (Donald Warren 1968) (Lazarfeld and Menzel 1961) French & Raven introduce five bases of power Coercive, Reward, Legitimate, Referent, and Expert.

(1) Coercive Power

This type of power is based upon the idea of coercion. This involves forcing someone to do something that they do not want to do. The ultimate goal of coercion is compliance. According to Changingminds.org “demonstrations of harm are often used to illustrate what will happen if compliance is not gained”. French & Raven (1959) state that “other forms of power can also be used in coercive ways, such as when reward or expertise is withheld or referent power is used to threaten social exclusion”. The power of coercion has been proven to be related with punitive behavior that may be outside one’s normal role expectations. (Hinkin & Schriesheim 1989) However coercion has also been associated positively with generally punitive behavior and negatively associated to contingent reward behavior.(Gioia & Sims 1983) This source of power can often lead to problems and in many circumstances it involves abuse. Mindtools.com states that “coercive power can cause unhealthy behavior and dissatisfaction in the workplace”. These type of leaders rely on the use of threats in their leadership style. Often the threats involve saying someone will be fired or demoted.

(2) Reward Power

The second type of power involves having the ability to administer to another things he/she desires or to remove or decrease things he/she does not desire. (French & Raven 1959) For supervisors in an organizational setting, it is the perceived ability to present subordinates with outcomes that are valued in a positive manner. (Hinkin & Schriesheim 1989) This type of power in based on the idea that we as a society are more prone to do things and to do them well when we are getting something out of it. Social exchange theorists as well as Power-Dependence theorists continue to focus on the idea of reward power. (Molm 1988) The most popular forms are offering raises, promotions, and simply compliments. The problem with this according to Mindtools.com is that “when you use up available rewards, or the rewards don’t have enough perceived value to others, your power weakens. (One of the frustrations with using rewards is that they often need to be bigger each time if they’re to have the same motivational impact. Even then, if rewards are given frequently, people can become satisfied by the reward, such that it loses its effectiveness.)”

(3) Referent Power

The power of holding the ability to administer to another feelings of personal acceptance or personal approval. (Hinkin & Schriesheim 1989) This type of power is strong enough that the power-holder is often looked up to as a role model. (Raven, 1988) This power is often looked at as admiration, or charm. The power derives from one person having an overall likability leading people to strongly identify with them in one form or another. A person with this type of power generally makes people feel good around them therefore one has a lot of influence. The responsibility involved is heavy and one can easily lose this power, but when combined with other forms of power it can be very useful. Celebrities often have this type of power in society on the flip side they also often lose it quickly in some circumstances.

(4) Expert Power

The ability to administer to another information, knowledge or expertise. (French & Raven 1959) Leaders who possess this type of power have high intelligence and rely on their ability to perform various organizational tasks and functions. This power makes one able to combine the power of reward in the correct fashion. When someone has the expertise in an organization people are more convinced to trust them and to respect what they stand for. When your expertise is valued, so are your ideas, and leadership.


Leadership: A Chinese Puzzle


Tailor’s  Time and Motion Studies



14 Principles in Management by Fayol



Laissez fair Philosophy

Laissez faire is short for “laissez faire, laissez passer,” a French phrase meaning to “let things alone, let them pass”. First used by the eighteenth centuryPhysiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. Adam Smith played a large role in popularizing laissez-faire economic theories in English-speaking countries.

Laissez faire (imperative) is distinct from laisser faire (infinitive), which refers to a careless attitude in the application of a policy, implying a lack of consideration, or thought.

The laissez-faire school of thought, or libertarianism, holds a pure capitalist or free market view, that capitalism is best left to its own devices — that it will dispense with inefficiencies in a more deliberate and quick manner than any legislating body could. The basic idea is that less government interference makes for a better system.

Laissez-faire philosophy was dominant in the late 19th and early 20th century in the wealthier countries of Europe and North America. Many historians also see that period as the height of laissez-faires implementation in those countries. However, there are critics who suggest that what was described as “laissez-faire” policy was simply pro-business policy, as with large subsidies for businesses to produce the railroads in the United States or the common use of tariffs by Republican presidents there. In this context, laissez-faire rhetoric was used to justify denial of similar subsidies to the poor and working classes.

For many, laissez faire theories fell into disrepute because of their failure to allow governments to deal with managing the economy during and after World War I, and their alleged failure to prevent The Great Depression. However, some libertarians, such as Milton Friedman andAlan Greenspan, argue that by the time of the Great Depression, significant government economic regulation had already taken place in most major economies, as workers and employees in all industries organized themselves into trade unions to demand better living standards, as well as various checks and balances to the perceived “tyranny of laissez faire”. Workers succeeded in obtaining minimum wage laws and aprogressive income tax in some countries. International trade barriers were also in the policy pipeline (e.g. Smoot-Hawley Tariff in the USA). So, according to the above-mentioned libertarians, the economies that suffered from the Depression, although possibly closer to laissez-fairethan any other economic models that were ever used, still did not embrace pure capitalism. Some critics of laissez faire argue that the attainment of pure capitalism is impossible, for example since it is difficult to deal with market failures without an active role for government.

Modern industrialised nations today are not typically representative of laissez-faire principles, as they usually involve significant amounts of government intervention in the economy. This intervention includes minimum wages, significant redistribution through tax and welfare programs, government ownership of businesses and regulation of market competition. However, many suggest that President Ronald Reaganof the United States and Prime Minister Margaret Thatcher of the United Kingdom followed a generally laissez-faire perspective.

In the wake of the rise of the USSR, laissez-faire economics assumed a stronger ideological edge, see e.g. Hayek. In the post-war era, where state regulation and involvement in the economy reached a peak, to no small extent as part of the Cold War, anti-statist schools of economic thinking enjoyed a surge of interest and support.


Labour movement

The term labour movement or labor movement is a broad term for the development of a collective organization of working people, to campaign in their own interest for better treatment from their employers and governments, in particular through the implementation of specific laws governing labour relationsLabour unions and trade unions are collective organizations within societies, organized for the purpose of representing the interests of workers and the working class. Many elite-class individuals and political groups may also be active in and part of the labour movement.



from Psychology – The Search for Understanding
by Janet A. Simons, Donald B. Irwin and Beverly A. Drinnien
West Publishing Company, New York, 1987

Abraham Maslow developed a theory of personality that has influenced a number of different fields, including education. This wide influence is due in part to the high level of practicality of Maslow’s theory. This theory accurately describes many realities of personal experiences. Many people find they can understand what Maslow says. They can recognize some features of their experience or behavior which is true and identifiable but which they have never put into words.

Maslow is a humanistic psychologist. Humanists do not believe that human beings are pushed and pulled by mechanical forces, either of stimuli and reinforcements (behaviorism) or of unconscious instinctual impulses (psychoanalysis). Humanists focus upon potentials. They believe that humans strive for an upper level of capabilities. Humans seek the frontiers of creativity, the highest reaches of consciousness and wisdom. This has been labeled “fully functioning person”, “healthy personality”, or as Maslow calls this level, “self-actualizing person.”

Maslow has set up a hierarchic theory of needs. All of his basic needs are instinctoid, equivalent of instincts in animals. Humans start with a very weak disposition that is then fashioned fully as the person grows. If the environment is right, people will grow straight and beautiful, actualizing the potentials they have inherited. If the environment is not “right” (and mostly it is not) they will not grow tall and straight and beautiful.

Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for understanding, esthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel the second need until the demands of the first have been satisfied, nor the third until the second has been satisfied, and so on. Maslow’s basic needs are as follows:

Physiological Needs
These are biological needs. They consist of needs for oxygen, food, water, and a relatively constant body temperature. They are the strongest needs because if a person were deprived of all needs, the physiological ones would come first in the person’s search for satisfaction.
Safety Needs
When all physiological needs are satisfied and are no longer controlling thoughts and behaviors, the needs for security can become active. Adults have little awareness of their security needs except in times of emergency or periods of disorganization in the social structure (such as widespread rioting). Children often display the signs of insecurity and the need to be safe.
Needs of Love, Affection and Belongingness
When the needs for safety and for physiological well-being are satisfied, the next class of needs for love, affection and belongingness can emerge. Maslow states that people seek to overcome feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging.
Needs for Esteem
When the first three classes of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for the esteem a person gets from others. Humans have a need for a stable, firmly based, high level of self-respect, and respect from others. When these needs are satisfied, the person feels self-confident and valuable as a person in the world. When these needs are frustrated, the person feels inferior, weak, helpless and worthless.
Needs for Self-Actualization
When all of the foregoing needs are satisfied, then and only then are the needs for self-actualization activated. Maslow describes self-actualization as a person’s need to be and do that which the person was “born to do.” “A musician must make music, an artist must paint, and a poet must write.” These needs make themselves felt in signs of restlessness. The person feels on edge, tense, lacking something, in short, restless. If a person is hungry, unsafe, not loved or accepted, or lacking self-esteem, it is very easy to know what the person is restless about. It is not always clear what a person wants when there is a need for self-actualization.
Hawthorne StudiesBackgroundDuring the early part of the century, American businesses were swept by Scientific Management, a school of thought largely developed by Frederick Taylor. He pioneered the use of time and motion studies, in which management would carefully break down tasks into simple chunks, then work out the best way for a worker to execute the chunks (all the way down to how long a step to take, how often to break, how much water to drink, etc.). The worker then executed their jobs exactly as they were told, like automatons.As part of the Scientific Management regime, companies routinely studied the effects of the physical environment on their workers. For example, they varied the lighting to find the optimum level of light for maximum productivity. They piped in music, varied the temperature, tried different compensation schemes, adjusted the number of working hours in a day, etc.The Hawthorne studies were carried out by the Western Electric company at their Hawthorne plant in the 1920’s. Initially, the study focused on lighting.Two things emerged from the initial studies: (1) the experimenter effect, and (2) a social effect. The experimenter effect was that making changes was interpreted by workers as a sign that management cared, and more generally, it was just provided some mental stimulation that was good for morale and productivity. The social effect was that it seemed that by being separated from the rest and being given special treatment, the experimentees developed a certain bond and camaraderie that also increased productivity.The second phase of the study, the Bank Wiring Room, was designed to study the social effects.Bank Wiring RoomThey called in some anthropologists from Harvard (Mayo, Warner) to help design a study. Basically they put some workers in a special room, and placed an observer full time in the room to record everything that happened. The kind of work done was assembling telephone switching equipment. The process was broken down into three tasks: wiring, soldering and inspection.The first few days, the workers would not talk openly in front of the observer. It took three weeks for normal behavior to resume. This included talking, fighting, playing games, binging, teasing, job trading, helping, etc.Physical Layout of the Bank Wiring Roomfor more details visit := http://www.analytictech.com/mb021/handouts/bank_wiring.htm——————————————————————————————————————-——————————————————————————————————————C o n t i n g e n c y  T h e o r yThere are many forms of contingency theory. In a general sense, contingency theories are a class of behavioral theory that contend that there is no one best way of organizing / leading and that an organizational / leadership style that is effective in some situations may not be successful in others (Fiedler, 1964). In other words: The optimal organization / leadership style is contingent upon various internal and external constraints.Four important ideas of Contingency Theory are:
1. There is no universal or one best way to manage
2. The design of an organization and its subsystems must ‘fit’ with the environment
3. Effective organizations not only have a proper ‘fit’ with the environment but also between its subsystems
4. The needs of an organization are better satisfied when it is properly designed and the management style is appropriate both to the tasks undertaken and the nature of the work group.

There are also contingency theories that relate to decision making (Vroom and Yetton, 1973). According to these models, the effectiveness of a decision procedure depends upon a number of aspects of the situation: the importance of the decision quality and acceptance; the amount of relevant information possessed by the leader and subordinates; the likelihood that subordinates will accept an autocratic decision or cooperate in trying to make a good decision if allowed to participate; the amount of disagreement among subordinates with respect to their preferred alternatives.

Sources: http://www.valuebasedmanagement.net/methods_contingency_theory.html andhttp://www.tcw.utwente.nl/theorieenoverzicht/Theory%20clusters/Organizational%20Communication/Contingency_Theories.doc/


Human Resources Management

1. Abstract

Human Recourses Mgt is a widely discussed subject today. Though the concept is started way back through human evolution until the industrial revolution it was not introduced systematically or developed. There after, through research and development it has taken up various changes right through the journey. In 21st century HRM becomes a vital function among the other functions of the management in an organization.

Though it is widely recognize by the world today at the beginning of 18th century this vital area had been practiced in a separate manner in the western as well as the Eastern parts of the world individually.

With the globalization and the international competitive environment the eastern strategies of HRM was deteriorated and HRM existing with the western influence.


This study will:

  1. Discuss the evolution of human resources Management;
  2. Compare and analyze Eastern and Western modules practiced earlier;
  3. Propose a module which suite to Sri Lanka.
    2. Introduction
    Human Resources (or personnel) management in the sense of getting thing done through people. It’s an essential part of every manager’s responsibilities, but many organizations find it advantageous to establish a specialist division to provide an experts service dedicated to ensuring that the human resources function is performed efficiently.
    “People are the most valuable asset in an organization” is a cliché which no member of any senior management team would disagree with. Yet, the reality for many organizations is that their people remain undervalued, under trained, underutilized, poorly motivated, and consequently perform well below their true capability.
    The rate of changes faced by the organizations today has never been greater and organizations must absorb and manage these changes at a much faster rate than ever before. In order to implement a successful business strategy to face this challenge, organizations, large or small, must ensure that they have the right people capable of delivering the strategy to achieve organizational objectives.
    The laborer market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’, product/ process/ organization knowledge and experience for new staff members.
    As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: “ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs”, that is, neither overstaffed nor understaffed in total or in respect of any one discipline or work grade.
    3.History of Human Resources management & Western

3.1 The ageless search for better ways

    • It’s, known that from earliest recorded times groups of people have been organized to work together towards planned goals. Their efforts coordinated and controlled to achieve such outcomes. Though the term scientific management did not come into being well into the Industrial Revolution (the latter half of the 19th century,) its history is, on reflection, much longer than the term itself. Consider the management skills required, by the ancient Egyptians to build their pyramids, by the ancient Chinese to build the Great Wall of China, the management skills of the Mesopotamians to irrigate their land and wall their cities, of the Romans when building their roads, aqueducts and Hadrian’s Wall. All these man-made constructions required large amounts of human effort and therefore organization i.e. planning, control and coordination. The Great Pyramid for example is 75600 square feet at its base, 480 feet high, and contains over 2 million blocks of stone, each weighing 2.5 tons. The base of the structure is only 7 inches from being a perfect square. This was achieved with no computer, electronic calculator, modern materials handling equipment or advanced mathematical techniques/ models.
    3.2 Scientific Management – some earlier contributors.
    • The Chinese philosopher Mencius (372-289BC) dealt with conceptual models and systems known to be as production management techniques. He highlighted the advantages of the division of labor. Records indicate that the ancient Greeks understood the advantages of, and practiced, uniform work methods. Their soldiers were instructed as to how their weapons and equipment should be laid out in case of a surprise attack. They also employed work songs to develop a rhythm, in order to achieve a smooth less fatiguing tempo, to improve productivity. The division of labor was recognized by Plato (427-347BC). He wrote in The Republic, ‘A man whose work is confined to such limited task must necessarily excel at it’.
    3.3 Ancient attitude to work
    • However, work itself was viewed by certainly the ancient Greeks and the Romans, as disgraceful. Work was something to be avoided as it got in the way of more ideal pursuits, such as the arts, philosophy and military adventure. Therefore, those who could afford to do so employed slaves.
    3.4 After the fall of the Roman Empire
    • With the fall of the Roman Empire, development was curtailed; slavery being replaced by feudalism. In pre-Reformation Christian Europe, work was also seen as a burden, a punishment for the sins of Adam and Eve, for which reward would be found in the hereafter. In this period, the mechanical clock, invented by Heinrich von Wych in Paris in 1370, and Guttenberg’s printing press were key to all future developments in scientific management. The former permitted accurate work measurement the latter the ability to communicate by the printed word. Indeed Guttenberg’s inspired creative thinking can be viewed as an early example of method study. The story goes that Guttenberg, whilst at a wine festival, realized he could apply the technique of using dies for coin-punching with the mechanics of a wine press, to produce a printed page, and made up of individual letters instead of from a single engraved block.
    3.5 Development during the Industrial Revolution.
    • The impetus for the Industrial Revolution developed by the seventeenth century. Agricultural methods had improved in Europe to the extent that surpluses were generated. These surpluses were used for trade. Trade routes were by this time expanding, on a global scale, including those to the East and the Americas to the West. Technical advances were being made, most importantly in textile manufacturing, notably in the eighteenth century, Hargreaves’s spinning jenny, Arkwright’s water frame and Compton’s mule. The steam engine first developed in 1698 by Thomas Savory, was harnessed by James Watt. Improved hygiene and diet, including the boiling of water to make tea (from the East,) led to expanding populations. These factors, technological developments, expanding trade/ markets, growing populations created opportunities for merchants and entrepreneurs to invest in new factories.
    3.6 The Factory System
    • Adam Smith, in the eighteenth century, advocated making work efficient by means of specialization. He advocated breaking the work down into simple tasks. He saw three advantages of the division of labor;     the development of skills      the saving of time      the possibility of using specialized tools. Following on rapidly from Smith changes in the process of manufacturing developed. After the War of Independence, there was a shortage of musket parts in the United States. Eli Whitney proposed the manufacturing of muskets by means of using interchangeable parts. Though the idea was viewed with initial skepticism, his process was successful in producing large quantities of interchangeable parts. Thus was born the process of tooling up for production. At this time Whitney developed and used techniques such as cost accounting and quality control. Records from the Soho Bell Foundry in Chelsea, around the same time as Whitney, reveal evidence of the use of production standards, cost control, work study and incentives.
    • In 1832, Charles Babbage, an engineer, philosopher and researcher, examined the division of labor in his book On the Economy of Machinery and Manufacturers. His work raised important questions about production, organizations and economics. Division of Labor One factor, crucial in the latter development of incentives, Babbage proposed, as an advantage of the division of labor, that the amount of skill needed to undertake a specialized task was only the skill necessary to complete that task. He illustrated this concept by breaking down the manufacture of a pin, into seven elements. The important implication for employers was that they need only pay for the amount of skill necessary to complete each individual task. He advocated breaking down jobs into elements and costing each element. In this way, potential savings from investments in training, process and methods could be quantified. Thus these developments presaged the machine age, replacing traditional manual labor and improving productivity.     Machines were located near sources of power, first water later coal for steam.

3.7 Scientific management

    • In (1856-1915), Frederick Winslow Taylor devised a system he called scientific management, a form of industrial engineering that established the organization of work as in Ford’s assembly line. This discipline, along with the industrial psychology established by others at the Hawthorne Works of Western Eclectic in the 1920s, moved management theory from early time-and-motion studies to the latest total quality control ideas.
    • Taylor’s ideas, clearly enunciated in his writings, were widely misinterpreted. Employers used time and motion studies simply to extract more work from employees at less pay. Unions condemned speedups and the lack of voice in their work that “Taylorism” gave them. Quality and productivity declined when his principles were simplistically instituted.
    • Modern management theorists, such as Edward Deming, often credit Taylor, however, with generating the principles upon which they act. Others, such as Juran, though, continue to denigrate his work. Modern theorists generally place more emphasis on worker input and teamwork than was usual in much of Taylor’s time. A careful reading of Taylor’s work will reveal that he placed the worker’s interest as high as the employer’s in his studies, and recognized the importance of the suggestion box, for example, in a machine shop.
    • According to the Toronto Globe and Mail, (1995) January 26, pp. B26, one of the popular current “re-engineering” gurus, G. Hamel, has this to say about Taylor’s ideas today:
    • “When I am in a mean mood, I call re-engineering ’21st century Taylorism”
    • There are three fundamental things that Frederick Winslow Taylor was emphasizing to be thought.
    • 1. Find the best practice wherever it exists. Today we call it benchmarking.
    • 2. Decompose the task into its constituent elements. We call it business process re-design.
    • 3. Get rid of things that don’t add value. Work out, we call it now.
    • “Whether it involves cycle time, quality or whatever, most of re-engineering has been about catching up.”
    • Management in organizations is products of their historical and social times and places. Thus, we can understand the evolution of management theory in terms of how people have wrestled with matters of relationships at particular times in history.
    • In 19th and 20thcentury Classical economists and innovators provided a theoretical background in various issues in industrially revolutionized period around the world. Towards the end of 20th century, business management came to consist of six important branches, giving prominence to Human resource management.
    • Human resources management from the beginning revolved in toa strategic function concerned with consequences of all organizational decisions for human productivity and for the well-being of the entire work force. It is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable work force, using an integrated array of cultural, structural and personnel techniques.
    4. Human Resources Management Today.
    At present, HR has the same importance as the other departments, in some corporate, it has more. With the constant increase in education, technology and frequent fluctuations in economic status and structures, it’s believed, HR is the oldest, most mature and yet, the most efficient of all management styles.
    The Human Resource Management is the  process of  acquiring  training, appraising, and  compensating by attending to their labor relations, health and safety and fairness concerns. The  topics  we  will  discuss  should  therefore   with  the  concepts  of  and  techniques need  to  carry   out  the  “people” or  personal  aspects  of   the  management  job.
    These include;
  1. Conducting  job  analyses  [determining the  nature  of  each employees job]
  2. Planning  labor  needs  and  recruiting  job  candidate
  3. Selecting  job   candidates
  4. Orienting  and  training  new  employees
  5. Managing wages  and  salaries [compensating  employees]
  6. Providing  incentives and  benefits
  7. Appraising  performance
  8. Communicating[interviewing, counseling  ,disciplining]
  9. Training  and  development
  10. Building  employee  commitment
    Why is HR management important to all Managers?  Let us look at    some of the mistakes made by Managers.
        • Hires the wrong person for the job
        • Experience the high   turnover
        • Find your people not   doing the best
        • Have your company taken to courts.
        • Commit any unfair labor practices.
    It’s understood, that the managers can’t do everything. lay  brilliant  plans, draw clear  organization  charts ,set  up  modern  assembly lines and  use  sophisticated accounting  controls. The whole thing collapse by  hiring  the  wrong  people  or  by  not  motivating subordinates . Hiring  the  “right  people”, for  the  right  job and  motivating  ,appraising  and  developing them. Getting good  results  is  the  bottom line of  managing and  that  as a manager will have  to  get  these  results through  “people”   .Gary Deshler,[Human Resource Management.]
    In small organizations line managers may carry all above personnel duties unassisted. But  as  the  organization  grows  they  need  the  assistance ,specialized  knowledge, and  advice of   a  separate  human resource staff.  The  human  resource  department provide the  specialized  assistance. In doing  so  the  HR  carries  out these  distinct  functions.
    1 Line function
    2 A co-coordinative  function
    3 Staff [service] function
    Look at  the  ma  functions  of  human resources

4.1 HR planning and recruiting

    Personnel  planning  is  the  first  in  the  recruiting and  selecting  process.
    1. Decide what positions have to be filled by engaging in  personnel  planning  and  forecasting.
    2. Build  a pool  of  candidates  for   these  jobs  by  recruiting  internal  or  external  candidates.
    3. Have applicants complete  application forms  and  perhaps  undergo  an  initial  screening interview.
    4. Use  selection  techniques like  tests, background investigations  and  physical  exams  to  identify  variable  candidates.
    5. Finally  decide  who  to make  an offer to  by  having  the  supervisor and  perhaps on  the  team  interview  the  final  candidate.
    4.2 Forecasting the supply of   inside candidates.
    • Most  firms  starts  with  inside  candidates  when there  is  a  projected  opening. Here  the main task  is   determining  which  current  employees  might  be  qualified  for  the  opening. For  this  you  need  to  know  your  current  employees skills, their   current  qualifications .These  contain  data  on  things  like   performance  records  ,educational  background promotability. They help managers which employees  are  available  for  transfer or promotion .Managers  use  several  sample  inventory  and  development record  in which  compiles  qualifications ,information on  each  employee. The  information  includes  education ,company sponsored courses  ,carrier and  development interests ,languages and  skills .This  is   just  a simple  ,manual  format which is  filled  by  the  employee  and  recorded.
    4.3 Forecasting the supply of outside candidates.
    • The first step is   to develop an   applicant pool. The  more applicants you  have  the  more  selective you  can  be  in  your  hiring. When  the  pool  is   big  the  techniques like  interviews  and  tests  to screen out  all  but  the  best. Effective recruiting  is  increasingly important today. Finding the right inducement for attracting and hiring employees can be a problem. A few years  ago  for an example about  47000 computer  animator jobs  opened worldwide  ,but only  14000 animators  graduated  from  school.
    • Advertising  in  all  types of  papers  is the  beginning of  recruiting  .Other than the  papers  ,the vacancies  or  openings for  the  higher ranks could  be  advertised  in  magazine and  more  appropriate  papers.
    • Construction of  the  advertisement  is  very  important .Experienced  advertisers use  a  four-point  guide called AIDA  [attention, interest ,desire, action]to  construct ads. You must  of  course  attract attention to  the  add  or  readers  may just  miss  or ignore .Employment  ads  should  be  very uncommon, heavy with  a  strong  back  ground  .Key  positions  should be  advertised  in  a  separate display ads.
    • Develop interest in the job. You  can  create interest by the nature  of  the  job  itself  with  lines  such as  “you will thrive on challenging work”. Finally  make  sure  the  ad prompts  action with  a  statement  like  “call  today “ or  “write  today  for  more  information” Most of  the employers  are familiar  with the  sorts of  things  they  usually cannot  put  in  ads such  as  “man wanted” or   “young  woman  preferred “ .Some  do walk in  interview and  some  are  called.
    • Executive  recruiters  are  called  ‘Head  hunters  “  are  special employment  agencies  retained  by  employees to  seek  out  top management  positions. They have  many contracts  and  are  especially  adopting  at  contracting  qualified  ,currently employed  candidates  who  are  looking  for  changes  of  jobs.
    4.4 Developing and using application forms.
    • Once  it’s made a pool  of  applicants  ,the selection process  can begin  and  the  application  form  is  usually  the  first  step  in  this  process. A  filled  in form  provides  four  types  of  information .
      • First  you  can  make  judgments  on  substantive matters ,such as  whether  the  applicant  has  the  education  and  experience to  do  the job.
      • Second you  can  draw  conclusions about  the  applicants previous  growth  and  progress  ,a  trait especially important  for  management  candidates.
      • Third  it’s tentative  conclusions  regarding  the  applicants  stability based  on  previous  work  record.
      • Fourth  it may  be  able  to  use  the  data  in  the  application  to  predict  which  candidates  will  succeed on  the  job  and  which  will  not.
    • Employers  should  carefully  review  their  application  forms  to  ensure  they  comply  with  equal  employment laws. Questions  raising,  race, religion, age,  sex, or  national  origin are  generally  not  illegal  under federal laws  ,but  they  are  legal  under  certain  state laws.
    • Employers need to keep general practical guide lines in mind.” The employment  history “ section should  request  detailed  information  on  each  prior  employer ,including  the  name  of  the  supervisor  and  his or  her  telephone  no  ,all  essential  for  following  up  references.
    4.5 Why careful selection is important?
    • With a pool  of  applicants  ,the  next  step   is  to  select  the  best  candidates  for   the  job. Selecting the right employee is important for three main reasons.
    1. Your own performance always depends on your subordinates. Employees  with  the  right  skills  and  attributes  will  do  a  better  job  for  you  and  the  company. Employee  without   these  skills   will  not  perform  effectively, and  your  own  performance  and  firms  will  suffer. The  time  to  screen  out  undesirables  is  before  they  care  in  the  door  ,not  after.
    1. Its   important  because  its  costly  to  recruit  and  hire  employees  .Hiring  and  training even  a  clerk  can  spent  lot  of  money. The   total  cost of  hiring  a  manager could easily  be  ten  times  higher ,interviewing  time  reference  clerk can  lot of  money. The  total  cost  of  hiring  and  training   a manager could  easily  be  ten times  higher ,interviewing  time  reference  clerking  All these  are  cost  involved.
    1. To  avoid negligent hiring  it  is  very  important  to  know  the  applicants  back ground  .Some with  criminal  records taken in  could cause  and  create  problems with the customers .Egg: “Pontiacs Vs K. M. S. Investments “ an  apartment  manager  with  a  pass  key  entered  a woman’s apartment  and  assaulted  a  lady. The  court  found   the  companies negligent  in  not  checking  the  managers back ground before  hiring  him.
    4.6 Training and developing employees.
    • Recruiting  and  selecting  high  potential  employees  does not  guarantee  ,they  will perform  effectively. For  one  thing  people  who  don’t  know  what  to  do  or how  to  do   it  can not  perform  effectively even  if  they want to. Next  step  is  therefore  to  ensure  that employees  know  what  to  do  and  how  to  do  it.
    • You  have  to   orient  and  train  them  .Employee  orientation  provide  new  employees  with  the  basic back  ground information  required  to  perform  their  jobs. Satisfactorily  such  as  information   about  company  rules  .The  HR  specialist usually  performs  the  first  part  of  the  orientation  ,by  explaining  basic  matters  like  working  hours  and  vacation. The  nature of  the  job  ,introducing  the  passion  to his  or  her  new  colleagues  ,familiarization the  new  employees  with  the  work place etc. New employees  usually  receive  an employee  hand  book  which  explains  things  like  working  hours  ,performance  reviews  ,getting   on  payroll and  vacations. Furthermore orientation is not just about  rules. It is also  about  making  the new  person  feel  welcome  and  at  home  and  part  of  the  team.
    • 4.6.1 The training process.
    • Training  refers  to  the methods  used  to  give  new  or  present  employees  the  skills they  need  to  perform  their jobs. Training  is  a  hallmark  of good  management   having  high  potential employees  does  not  guarantee  they will  succeed. Instead  they  have  to know  ,what  you  want  them  to  do  and  how  you want them  to  do  it.
    • If they do the jobs their way, not the company ways . Good  training  is   vital.
    • 4.6.2  Why is training business is booming?
    • ‘TRAINING  “  is  more  inclusive  than  it  used  to  be. Training  used  to  focuses mostly  on  teaching technical  skills  ,such  as  training  assemblers  to  solder wires  or  teachers to  write lessons  plan. Today  such technical training  is  no  longer enough. Employers  today  have to adapt  to  technological  change, improve  product  and  service  quality and  boost  productivity  to  stay  competitive .Doing so  often requires remedial  education .For  example quality improvement  programs  require employees who  can  produce  charts  and graphs  and analyze data. Similarly  making ,communication as well  as  technological   and  computer skills .As  competition demands  better service  employees increasingly  require customer service training.
    • 4.6.3 The five step training and development process.
    • Training programs consists of five steps.
          1. The first  step  need  analyzes  step ,identifies the  specific job  performance  skills  needed  .analyzes  the skills  and  needs  of  the  prospective trainees  ,and  develops  ,specific measurable knowledge and  performance objectives.
          2. instructional  design ,you  decide  compile and  produce the training  programmed content ,including  work  books ,exercises and activities .Such as  on  the  job training  and  assisted learning.
          3. The validation  step  in  which  the  bugs  are  worked  out  of  the  training programs  by presenting  it  to  a  small  representative audience.
          4. To implement the programs by actually training target employee groups.
          5. An  evaluation and  follow  up  step in  which management  access the  programs of  service  or  failures.
    • 4.6.4 On the  job training.
    • Every  employee  from mail  clerk  to    companies   president  ,gets on the job training when  he  or  she  joins  a  company.

    4.7  Employee motivation

    To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.
    Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.
    As staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as ‘fair and just’ there will be no motivation.
    Hence while the technicalities of payment and other systems may be the concern of others, the outcome of them is a matter of great concern to human resource management.
    Increasingly the influence of behavioral science discoveries are becoming important not merely because of the widely-acknowledged limitations of money as a motivator, but because of the changing mix and nature of tasks (e.g. more service and professional jobs and far fewer unskilled and repetitive production jobs).
    The former demand better-educated, mobile and multi-skilled employees much more likely to be influenced by things like job satisfaction, involvement, participation, etc. than the economically dependent employees of yesteryear.
    Hence human resource management must act as a source of information about and a source of inspiration for the application of the findings of behavioral science. It may be a matter of drawing the attention of senior managers to what is being achieved elsewhere and the gradual education of middle managers to new points of view on job design, work organization and worker autonomy.

    4.8 Employee evaluation

    • An organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons:
      • To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers, but (about annually) two key questions should be posed:
        • what has been done to improve the performance of a person last year?
        • and what can be done to improve his or her performance in the year to come?).
      • To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.
      • To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1. and 2. but is based on the same assessment).
    • On-the-spot managers and supervisors, not HR staffs, carry out evaluations. The personnel role is usually that of:
      • Advising top management of the principles and objectives of an evaluation system and designing it for particular organizations and environments.
      • Developing systems appropriately in consultation with managers, supervisors and staff representatives. Securing the involvement and cooperation of appraisers and those to be appraised.
      • Assistance in the setting of objective standards of evaluation / assessment, for example:
        • Defining targets for achievement;
        • Explaining how to quantify and agree objectives;
        • Introducing self-assessment;
        • Eliminating complexity and duplication.
      • Publicizing the purposes of the exercise and explaining to staff how the system will be used.
      • Organizing and establishing the necessary training of managers and supervisors who will carry out the actual evaluations/ appraisals. Not only training in principles and procedures but also in the human relations skills necessary. (Lack of confidence in their own ability to handle situations of poor performance is the main weakness of assessors.)
      • Monitoring the scheme – ensuring it does not fall into disuse, following up on training/job exchange etc. recommendations, reminding managers of their responsibilities.
    • Full-scale periodic reviews should be a standard feature of schemes since resistance to evaluation / appraisal schemes is common and the temptation to water down or render schemes ineffectual is ever present (managers resent the time taken if nothing else).
    • Basically an evaluation / appraisal scheme is a formalization of what is done in a more casual manner anyway (e.g. if there is a vacancy, discussion about internal moves and internal attempts to put square pegs into ‘squarer holes’ are both the results of casual evaluation). Most managers approve merit payment and that too calls for evaluation. Made a standard routine task, it aids the development of talent, warns the inefficient or uncaring and can be an effective form of motivation.

    4.9 Industrial relations

    • Good industrial relations, while a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between:
    • (a) Workers (and their informal and formal groups, i. e. trade union, organizations and their representatives);
    • (b) Employers (and their managers and formal organizations like trade and professional associations);
    • (c) The government and legislation and government agencies l and ‘independent’ agencies like the Advisory Conciliation and Arbitration Service.
    • Oversimplified, work is a matter of managers giving instructions and workers following them – but (and even under slavery we recognize that different ‘managing’ produces very different results) the variety of ‘forms’ which have evolved to regulate the conduct of parties (i.e. laws, custom and practice, observances, agreements) makes the giving and receipt of instructions far from simple. Two types of ‘rule’ have evolved:
      • ‘Substantive’, determining basic pay and conditions of service (what rewards workers should receive);
      • ‘Procedural,’ determining how workers should be treated and methods and procedures.
    • Determining these rules are many common sense matters like:
      • Financial, policy and market constraints on the parties (e.g. some unions do not have the finance to support industrial action, some have policies not to strike, some employers are more vulnerable than others to industrial action, some will not make changes unless worker agreement is made first, and rewards always ultimately reflect what the market will bear);
      • The technology of production (the effect of a strike in newspaper production is immediate -it may be months before becoming effective in shipbuilding);
      • The distribution of power within the community – that tends to vary over time and with economic conditions workers (or unions) dominating in times of full employment and employers in times of recession.
    • Broadly in the Western style economies the parties (workers and employers) are free to make their own agreements and rules. This is called ‘voluntarism’. But it does not mean there is total noninterference by the government. That is necessary to:
      • Protect the weak (hence minimum wage);
      • Outlaw discrimination (race or sex);
      • Determine minimum standards of safety, health, hygiene and even important conditions of service;
      • To try to prevent the abuse of power by either party.
    • HR managers responsibilities
    • The personnel manager’s involvement in the system of industrial relations varies from organization to organization, but normally he or she is required to provide seven identifiable functions, thus:
      1. To keep abreast of industrial law (legislation and precedents) and to advise managers about their responsibilities e.g. to observe requirements in respect of employing disabled persons, not to discriminate, not to disclose ‘spent’ convictions of employees, to observe codes of practice etc. in relation to discipline and redundancy, and similarly to determine organizational policies (in conjunction with other managers) relevant to legal and moral requirements (see also 4.).
      2. To conduct (or assist in the conduct) of either local negotiations (within the plant) or similarly to act as the employer’s representative in national negotiations. This could be as a critic or advisor in respect of trade etc. association policies or as a member of a trade association negotiating team. Agreements could be in respect of substantive or procedural matters. Even if not directly involved the personnel manager will advise other managers and administrators of the outcome of negotiations.
      3. To ensure that agreements reached are interpreted so as to make sense to those who must operate them at the appropriate level within the organization (this can involve a lot of new learning at supervisory level and new pay procedures and new recording requirements in administration and even the teaching of new employment concepts – like stagger systems of work – at management level).
      4. To monitor the observance of agreements and to produce policies that ensure that agreements are followed within the organization. An example would be the policy to be followed on the appointment of a new but experienced recruit in relation to the offered salary where there is a choice of increments to be given for experience, ability or qualification.
      5. To correct the situations which go wrong. ‘Face’ is of some importance in most organizations and operating at a ‘remote’ staff level personnel managers can correct industrial relations errors made at local level without occasioning any loss of dignity (face) at the working level. ‘Human resource management’ and the obscurity of its reasoning can be blamed for matters which go wrong at plant level and for unwelcome changes, variations of comfortable ‘arrangements’ and practices and unpopular interpretation of agreements.
      6. To provide the impetus (and often devise the machinery) for the introduction of joint consultation and worker participation in decision-making in the organization. Formal agreement in respect of working conditions and behavior could never cover every situation likely to arise. Moreover the more demanding the task (in terms of the mental contribution by the worker to its completion) the more highly–educated the workers need to be and the more they will want to be consulted about and involved in the details of work life. Matters like the rules for a flextime system or for determining the correction of absenteeism and the contents of jobs are three examples of the sort of matters that may be solely decided by management in some organizations but a matter for joint consultation (not negotiation) in others with a more twenty-first-century outlook and philosophy. Human resource management is very involved in promoting and originating ideas in this field.
      7. To provide statistics and information about workforce numbers, costs, skills etc. as relevant to negotiations (i.e. the cost of pay rises or compromise proposals, effect on differentials and possible recruitment/retention consequences of this or whether agreement needs to be known instantly); to maintain personnel records of training, experience, achievements, qualifications, awards and possibly pension and other records; to produce data of interest to management in respect of personnel matters like absentee figures and costs, statistics of sickness absence, costs of welfare and other employee services, statements about development in policies by other organizations, ideas for innovations; to advise upon or operate directly, grievance, redundancy, disciplinary and other procedures.
    4.10 Provision of employee services
    • Attention to the mental and physical well-being of employees is normal in many organizations as a means of keeping good staff and attracting others.
    • The forms this welfare can take are many and varied, from loans to the needy to counseling in respect of personal problems.
    • Among the activities regarded as normal are:
      • Schemes for occupational sick pay, extended sick leave and access to the firm’s medical adviser;
      • Schemes for bereavement or other special leave;
      • The rehabilitation of injured/unfit/ disabled employees and temporary or permanent move to lighter work;
      • The maintenance of disablement statistics and registers (there are complicated legal requirements in respect of quotas of disabled workers and a need for ‘certificates’ where quota are not fulfilled and recruitment must take place);
      • Provision of financial and other support for sports, social, hobbies, activities of many kinds which are work related;
      • Provision of canteens and other catering facilities;
      • Possibly assistance with financial and other aid to employees in difficulty (supervision, maybe, of an employee managed benevolent fund or scheme);
      • Provision of information handbooks,
      • Running of pre-retirement courses and similar fringe activities;
      • Care for the welfare aspects of health and safety legislation and provision of first-aid training.
    • The location of the health and safety function within the organization varies. Commonly a split of responsibilities exists under which ‘production’ or ‘engineering’ management cares for the provision of safe systems of work and safe places and machines etc., but HRM is responsible for administration, training and education in awareness and understanding of the law, and for the alerting of all levels to new requirements
    • Above discussed development of human resources management was initiated from the west. Hence, it can be called as western strategy of human resources management.
    5. Human Resources Management in East.
    • Ten years ago, Human Resource Management was almost an unknown term in Asia. Training, selection, and performance appraisal were given very short shrift, and staff specialists, when they existed, were known as Personnel Managers, or had a dual role of Administration Manager with a “Personnel” tag thrown in for good measure. Back in those days, Asian companies were not aware of how effective management of the human resource had a major bearing on the bottom line. The educational sector gave little support. Professional associations were fledgling to say the least. A “personnel” position was often something in which you ended up in after failing to make sales and seen as a dead end position. The National University of Singapore, the government anointed showcase of an Asian university did not offer one unit in psychology. China funded anything to do with science and technology, but soft sciences such as management and HRM were ignored.
    • Part of this was due of course to the culture of staffing of Asian business. Guanxi reigned supreme in staffing decisions, with family controlled companies meaning promotion was often the sole pre-rogative of family members. Cash reigned supreme as a way of evaluating jobs, where opportunities for professional development, training, and knowledge acquirement played very much the second fiddle to the salary level and perks. Objective rating of performance in many companies was therefore irrelevant, even if there was the competence to perform it well.

6. Comparison of West & East HRM models.

    7. Human resources challenges in Sri Lanka.
    The recent Employers’  Federation seminar on “a more pragmatic approach to management rewards”  highlighted the current state of play of executive compensation in the private sector and the need to move away from fixed pay towards short term and long-term incentives to drive superior performance and to retain top performers.
    Today the Indian sub continent is becoming an employee market, with job seekers having the power of choice. Candidates are increasingly selective and know their market value. It is a candidates’ market as more of them are turning job offers or negotiating salaries aggressively.
    Take Sri Lanka because of a short supply of good talent an open war for talent is being fought in our corporate corridors by companies to recruit the right candidates for their companies despite the number of CVs being received by them have increased drastically compared to five years ago. Good jobs are going begging and compensation skyrocketing due to the shortage of right people with the required financial sophistication. The brain drain too has added to this problem and made it difficult for companies to fill critical short-term talent gaps.
    The demand for vertical skills and companies looking for a closer fit is putting pressure on recruitment consultants to move the limited talent from one company to another at a much faster pace causing much anxiety to HR managers. Companies to prevent their business objectives languishing in the face of shortage of the right talent are willing to pay big bucks to prospective candidates; these companies have thus been involuntary contributors to a big increase in salary levels. In today’s context a talented employee can be as valuable and hard to replace as a loyal customer.
    Even more so in companies where value is created by knowledge and information. In fact Lee Kuan Yew argued some years ago that “trained talent is the yeast that transforms a society and makes it rise.” Brainpower as we all know is today the foundation of value creation, therefore injecting an endless stream of top talent into the veins of the business and building the best team in the industry would become the key to ensure that organizations excel in the new global market place, deliver constantly superior products and services and set standards that others can follow
    Companies now need to build talent at all levels, people who can make a huge difference in organizational performance and continuously find people who make a difference, Jim Collins in his book ‘Good to Great’ says “we’re not going to figure out where to drive this bus until we’ve figured out who should be on the bus, who should be off the bus, and who should be in what seats. Then we’ll turn our attention to where we’re going to drive the bus”. So the challenge for any company is to first get the right people on the bus, the wrong people off the bus, the right people into the right seats- then figure out where to drive the bus.
    The key talent in a business is the company’s most important asset and a source of competitive advantage–everything else can be replicated. Companies then need to build talent at all levels that can make a difference in organizational performance and continuously find people who make a difference.
    This is leading to more pressure on HR managers from the top to shift from being a personal administrator to being a strategic business partner in recruiting, motivating and retaining top talent. Then, it is time the human resources department–the traditional keeper of the people function-is considered the company’s most valuable strategic function.
    HR professionals should strongly position HR departments to take on the role of a strategic business partner, and ensure HR is viewed on equal terms with other business partners, such as finance or sales. Today there is ample evidence to support this argument. For example in researching what drives corporate value, the Forbes/Ernst & Young Value Creation Index found this to be one of the top key factors in a firm’s ability to attract and manage talented employees.
    So companies need to make sure they are getting the best people and have the competence to inspire and motivate employees to release their discretionary effort beyond the call of duty. In today’s context companies have to work very hard to find good talent because there is a short supply of good talent. So when they find the right talent with the right profile they would have to make sure that they are not only offering very competitive compensation package, but also the kind of culture, development and other benefits that makes the company the kind of company that people want to work for.
    Companies are fond of the maxim employees are our most important asset, yet beneath the rhetoric too many CEOs still regard – and –manage –  employees as costs. This is dangerous because for many companies the people are the only source of long- term competitive advantage. Therefore companies that fail to invest in employees jeopardize their own success and survival. If the CEO is expected to build and motivate talent it calls upon competencies of character more than technical expertise among CEOs. It relies upon on higher order abilities to create unity and harmony, to instill trust, to create hope and optimism and to work from a base of shared values and interdependence.
    Leadership of this type is often indirect and behind the scene versus from the front and top down. Today motivating people is very different to what it was some years ago, because nowadays, oversees assignments, stock options, casual dress and free gyms are just as important to attracting and retaining talented employees as salaries, job security and careers once were. A happy workforce can reward a company through better profits, better productivity and lower staff turnover. Also there is no special magic in being a good employer.
    It does not necessarily take money, size, or market to become an employer of choice. Rather, its enlightened HR policy and leadership that is committed to its staff. It is organizational capabilities that create products and services that result in a customer taking money out of their wallets and putting it into ours instead of giving it to their competitors.
    Churchill many years ago observed that ‘the empires of the future will be empires of the mind.” In many of the developed world our immigrants tend to get criticized unfairly by the press. Many top economies of the world would be lost without our qualified professionals, and many governments would still be very happy to attract our best talent. The most mobile people are not our political refugees, but the educated, and they are being sought after as never before.
    Most governments are easing restrictions on the entry of qualified people. One of the best programmers for drawing in good human capital was initiated in the ‘80s by the Singapore government. The initiative helped Singapore to attract some of our best brains and even today continues to go out of its way to attract and import foreign talent. For a start the government should focus on wooing our professionals working abroad by making it very attractive for them to come back. But the government’s effort will all depend on whether the country is backed up by a vibrant economy and also managed professionally.
    A combination of sensible government policies and economic liberalization could work wonders for us. Our best bet would therefore be to woo back some of our top expatriates who have gone abroad to make their money but still feel the tug of their home country. We need to introduce attractive incentives that can entice them to return and also to retain our existing talent. However, despite the incentives they will not return until and unless we improve our governance record and manage the economy professionally. In addition to this the government should initiate a programme in consultation with the private sector to equip our university graduates with the required skills set.
    Globalization has left only one true path to profitability for firms operating in high wage markets, to base their competitive strategy on exceptional human resource management. Any benefits that historically have been associated with superior technology and access to capital are now too fleeting to provide sustainable advantage.
    As this former source of advantage become less relevant, managing human resources by instinct and intuition becomes not only inadequate but also dangerous. The most successful countries in the future will be those that manage their people like the assets they are.
    In the future the global demand for talent is only likely to intensify further, we are already struggling to find enough good quality engineers, technicians, doctors, HR, marketing and even English teachers. The talent shortage may seem like a crisis to many of us, but like any crisis it’s also an opportunity. So for a change the government and the private sector need to be more imaginative about attracting, developing and retaining our best talent in Sri Lanka and abroad.
    Globally  what  HRM  has  done  for  the  management  of  “people “  are immense and  huge.  Adequate evidence are there to say   about how history “Managed people for  the  best out put”.  Some of the “seven wonders “are the excellent results of how well HRM has been practiced at the past.  How well “JUST IN  TIME”  has  been  practiced  is very  well  seen.
    “Human  power and  the  strength “ is  the  most  valuable assets that  should  be  managed  very  well. Unfortunately  in  Sri Lanka  HR  is   practiced  only  in  few  sectors  like cooperate  and  private  only.  Sri Lanka  history  has  lot  of   evidence  to  say  how  well human  power  was  managed for  the  best   of  outcome.       Eg:   How  old  kings  created  those  wonders  like  “Ruwanwelisaya ,Mirisawatiya , and  all  those  enormous water  tanks  etc which use in eastern philosophies of people management .We  still  can  argue  to  say  that   HR was practiced in the world to the  best , in the  history,  when  compared  todays.
    Very  unfortunately  that HRM  knowledge  is  not  passed   down  to  the  generation  and  it  has   come  to  a  natural  death .If  these  strategies  can  be  traced  back  and  reintroduced  along with  the  present  western type of HRM  strategies  it  is  obvious  that  SRI  LANKA  will be  a  one  of   the  best developed  countries  in  the  world having  the  best of  “HRM’ practices.
    9. References
    • Gary Deller – Human Resource Management _ 9th Edition , pp 55 ~ 131
    • Sunday Times – Human resources challenges for Sri Lanka – 22nd April 2007.
    • Gary Deshler, [Human Resource Management.]www.prenhall.com/dessler.



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