Introduction to Human Resource Management

In simple terms HRM is the process of utilizing the Human Resources efficiently and effectively in order to achieve the goals and objectives of a particular organization.

HRM is one part of the process that helps the organization to achieve its objectives. Once an organizations strategic path has been established to meet its objectives and goals, they have to be developed into action plans. These objectives cannot be attained without resources which inevitably include people. (Human resources)

HRM will be part of the process which determines what kind of people are required, how to utilize them and how to manage them. This process should be fully integrated with all other processes of management.

The main purpose of HRM is to create and retain a suitable and satisfied set of employees to provide maximum contribution to the organizations success.

The main goals of HRM

• Improve employee productivity
• Employee Development
• Increase the Quality of Work Life (QWL)
• To ensure legal compliance

Improve employee productivity

Employee productivity can be identified as the relationship between employee inputs and out puts within a certain period of time.

Employee productivity =   OUTPUT / INPUT =  no. of units produced / no. of employees

Thus, if the productivity is to increase the output has to invariably increase.

Employee Development

This is concerned with the employee achieving his/her personal goals in terms of knowledge, skills, promotions, increments, etc.

Increase the Quality of Work Life (QWL)

This is about basically building a good work environment for employees. And getting the employees to participate in the decision making that affects them which will increase the satisfaction of employees which in turn will increase QWL.

To ensure legal compliance

This is to adhere to the rules and regulations implemented by the Government. The various laws that affect the employer/ employee relationship in Sri Lanka are:

• Shop and Office Employees Act
• Industrial Disputes Act
• Employee Provident Fund Act
• Employee Trust Fund Act
• Wages Board Ordinance
• Employment of Woman, Young Persons and Children’s Act
• Termination of Employment of Workmen Act
• Maternity Ordinance
• Gratuity Act

• HRM
• Human Resource Management