Editor

: Dr. Ajantha Dharmasiri

Coordinators : Prof. Sudatta Ranasinghe Dr. Pavithra Kailasapathy Mr. Janaka Kumarasinghe Mr. Udeni Alawattage Mr. Aruna Dayanatha Mr. Priyal Perera Mr. Hasantha Sooriyaarachchi Ms. Chathuri Galappaththy Mr. Chandima Pinsiri

Cover designed by Mr. Udeni Alawattage

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CONTENTS 1. The Challenge of Developing and Optimizing Human Resources in Sri Lanka: Current Issues and their Implications Sudatta Ranasinghe
Impact of Supervisor Support and Work Schedule Flexibility on Job Stress and Turnover Intention of Software Developers in Sri Lanka

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Vathsala Wickramasinghe 3. 4. 5. 6. Grandeur of the Grounded Theory: Unearthing the Uniqueness Ajantha S Dharmasiri HR Technology and HR Technology for Competitive Advantage Aruna Dayanatha Do Organisations Benefit from Employee Empowerment? Chandana Jayawardena and Yugan Pathirage Talent Management Process and Growing Organizational Complexity Chaturi Galappaththi Employee Perception on the Existing Performance Evaluation Sysytem: An Empirical Investigation at Star-Tel (Pvt) Ltd Ayoma Lakmali Aberathna A Comparative Study of Traditional and Non Traditional Motivational Methods in Banks R.S.P.N.Gunawardhana Improving Performance of the Employees Through an Effective Peformance Evaluation Ramanusha Poopalaratnam Impact of Human Resource Information Systems on Strategic Human Resource Management Shiwanthie Wijesuriya Book Review: Dealing with Sexual Harassment in the Workplace Pavitha Kailasapathy The Evolving Role of Modern HR Manager Chandrasiri Gannile 28 39 61 74

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HRM Perspectives Editorial

Highlighting Research on Human Resources

Human resource, as we are aware, is the most precious resource in any organization. Research related to human resources occupies high prominence in the echelons of research. We, the Research and Publications Committee (RPC) of IPM, are indeed delighted to present the 2012 volume of the HRM Perspectives magazine in fulfilling our duty of showcasing HR related research. Research on Human Resources falls into the broader category of Management research, which in turn, is a part of the wider array of social research. Whilst positive initiatives are being taken, the current situation with respect to research in Sri Lanka is far from a satisfactory level. Dr Jayaratne Pinikahana has aptly highlighted this, in a newspaper article last year. Sri Lanka contributes only 0.17% from GDP whereas Singapore contributes 2.3%, South Korea, 2.9% and China, 1.3% from their GDP for research. A recent report published by the Ministry of Technology & Research in Sri Lanka revealed that Sri Lanka has only 287 researchers per million which is much less than the world average of 894. The average number of researchers per million in the developed world and the developing world is 3272 and 374 respectively. It is clear from these statistics that Sri Lankan situation is worse than the average third world situation. The most alarming situation is that it is getting worse in recent years. For example, in 1996 Sri Lanka had 6000 full time researchers including university researchers but by 2006 this number declined to 4200. (Island, 22/02/11) In such a context, any move to strengthen the research rigor, particularly among the student community, is commendable. IPM also has taken a small but a

significant step in publishing the research of its students and members alike. Accordingly, offering insights into human behavior in organizations with social, cultural, economic, political and environmental aspects aptly blended, has been the key endavour in publishing this volume. You will find a wide assortment of papers ranging from theoretical to practical aspects. The authors with diverse backgrounds representing professionals from both public and private sectors have contributed to the informative and insightful nature of the magazine. As such, papers from academics and practitioners alike have been accommodated in order to maintain a healthy balance of depth and breadth. Our intention is not to project HRM Perspectives magazine as a scholarly journal, but more as a channel to recognize emerging contributors to HR related research, and include work of veterans as exemplary pieces of work. We were conscious of the fact that some of our selection may not appease scholarly academics, but the intention was to accommodate upcoming researchers as a source of encouragement for them. We are of the view that research related to human resources has to gain a renewed enthusiasm in Sri Lanka. The presence of several annual research conferences and the availability of several management journals are a welcome sign for a better future. Whilst appreciating their immense contribution, we see a void in accommodating research papers by practitioners. HRM Perspectives magazine attempts to fill this in providing a solid platform to showcase such research. We earnestly hope that HRM Perspectives would assist a deeper understanding of human resources, whilst enriching the body of knowledge, and in turn contributing to the development of Sri Lankan economy. Ajantha Dharmasiri ajantha@pim.lk

THE CHALLENGE OF DEVELOPING AND OPTIMIZING HUMAN RESOURCES IN SRI LANKA: CURRENT ISSUES AND THEIR IMPLICATIONS
Sudatta Ranasinghe Professor, Faculty of Humanities and Social Science Open University of Sri Lanka. sudattawr@gmail.com

ABSTRACT There is consensus of opinion that well developed human resources plays a critical role in the process of value creation and thereby enhances the prospects of competitive capability of a nation. Having reached over 92 percent adult literacy Sri Lanka demonstrates a high potential to become a knowledge hub in South Asia as laid down in the Mahinda Chintana- towards a New Sri Lanka, the policy framework of the Government. Sri Lankas achievements in relation to social development indicators such as adult literacy, life expectancy and infant mortality are well known. However, it has not yet been possible for the country to reach the status of a knowledge driven economy despite the fact that Sri Lanka has surpassed a per capita income of US $2000 and reached a growth rate of 8 per cent in 2010. The annual investment for education in Sri Lanka has been below 2 per cent of the GDP. Where higher education is concerned the national investment has been dismally low; around 0.6 per cent of the GDP. In this context, transforming the nations human resource into a high value adding dynamic resource is a serious challenge. The data on performance of the economy shows that growth has occurred mainly in the services sector which has contributed about 59 per cent of the GDP as per the Annual Report of the Central Bank of Sri Lanka for 2010. Other key sectors such as Agriculture, Forestry, Fisheries and Livestock, and Manufacturing Industries have maintained a slow growth rate. These sectors have absorbed largely the less skilled
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rural labour whose productivity, as well as earnings, are comparatively low. Sri Lanka is facing the challenge of absorbing into productive employment the youth who join the workforce annually. These youth, in the age group of 15-24 years and comprising of school leavers, apparently do not have marketable knowledge and skills. Thus, the challenge of transferring marketable skills to these youths is expected to be tackled through appropriate reforms in the system of education and training. The paper posits that a paradigm shift in the current approach towards education, higher education and vocational and technical education is needed if we are to optimize the available workforce through transfer of marketable skills and inculcation of right attitudes. Key words: Marketable skills, productive employment, youth workforce, knowledge and skills development 1. INTRODUCTION

The draft National Human Resources and Employment Policy developed by the Government of Sri Lanka (GOSL) with the technical assistance of the International Labour Organization (ILO) states thus; Human resources in Sri Lanka have considerable potential to steer the countrys growth trajectory from its current low-skilled, low productive and low-income earning workforce to one that is highly-skilled, dynamic, and globally competitive. With social development achievements in access to education and health, further improvements in the quality of education and training are critical to make Sri Lanka a knowledge hub in Asia (page 04 of the draft policy document). Thus, as envisaged in the National Human Resources and Employment Policy, further increase in the level of investment in human capital is necessary to raise the competencies of our workforce in order to transform them qualitatively to become high-skilled and high productive and globally competitive workers who can fit in for high-end jobs in the global value chain. This would also entail wide reforms in the education system covering the school and university education and technical and vocational education. In this regard a lead role is expected to be played by the National Education Commission. It might also be necessary to revisit the current fragmented institutional framework of human resource development with the view to integrating institutional level strategies
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and action plans within the framework of the National Human Resources and Employment Policy. The objective of the present paper is to briefly survey the issues pertaining to human resource development at the macro level and identify the scope and limitations in transforming the current human resources in qualitative terms so that the available potential can be optimized making the Sri Lankan workers globally competitive. The paper is based primarily on secondary data gathered from published as well as unpublished reports. The writers own observations as a member of the local expert group involved with drafting the National Human Resources and Employment Policy also helped in preparing the present paper.

2.

ISSUES PERTAINING TO EMPLOYMENT, INCOME AND DECENT WORK

Though Sri Lanka has been able to maintain a consistent record in terms of social development indicators for the past few decades, there has been less success in eradicating the problem of unemployment particularly among the youth by creating productive and decent employment opportunities. It is estimated that unemployment rates among those in the 15-24 year age group are three times that of adult unemployment in Sri Lanka: 24.6 per cent for young women and 18.6 per cent for young men in the second quarter of 2010. Unemployment among the educated is also high in Sri Lanka. The share of unemployed persons with GCE (A/L) and above educational attainments had been 10.8 per cent, which is much above the average unemployment rate for males (6.6 per cent) in 20091. The annual addition to the labour force is estimated to be around 140,000. Of this number only a few (about one third) enjoy prospects of securing employment in the formal sector on account of educational qualifications and skills. It is estimated that about 60 per cent of the employed are in the informal sector where opportunities for decent work are limited. According to available data, over 85 per cent of employment in the agriculture sector is informal and among those in informal employment majority (65 per cent) comprise of males. One might also note that working poor is another problem connected to low productive informal employment in the rural areas. Studies on poverty have indicated that 13.7 per cent of the employed in Sri Lanka had come
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under the category of working poor in 2007 as they have earned about 1-2 dollars per day from employment. Prevalence of high degree of underemployment among these workers may also have contributed to low incomes. According to the Department of Census & Statistics (Labour Force Survey- Annual Report 2009), of the countrys labour force of 8 million (which accounted for a labour force participation rate of 48.7%), 5.1 million comprised of males and 2.8 million of females. Thus, the labour force participation rate for males was 66.6% and for females it was 32.8%. A relatively low labour force participation rate among the females shows that the contribution made by females towards economic activities goes largely unnoticed and gets recorded under domestic work. A study undertaken by the Department of Census & Statistics (2005) on female participation in informal economic activities shows that 31% of the employed females were in informal employment and 34 and 30 per cent respectively of the female population came under Unpaid family worker and Own account worker categories. In terms of educational achievements and skills acquisition females appear to be more vulnerable to social and other constraints. Hence their capacity to secure decent work in the formal sector has been limited. Due to lack of marketable skills female workers have lesser prospects of securing decent and safe employment in the foreign job market. According to the Labour Market Information Bulletin (2009), among those who migrated for foreign employment in 2009, 54% were females and 46% were males. Of the total number of Sri Lankan workers migrated abroad for employment, 48.5% came under the category of Housemaids. Those classified under the Professional category was a mere 2,820 individuals and the Middle Level category comprised of 6,392 individuals. The Skilled category made up 61,230 (26%) and the Unskilled category added a further 50,158 (21.4%). The profile of the Sri Lankan migrant workers shows that due to poor skills, Sri Lankan workers, particularly females, are unable to secure better paid stable employment. According to official sources, during 2011 Sri Lanka had lost the prospects of securing a good number of well paid jobs in the Middle East due to shortage of the skills demanded.

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3.

LABOUR MARKET STRUCTURAL ISSUES

An effort has been made by the Tertiary & Vocational Education Commission (TVEC) as well as the Department of Employment Promotion to assess the labour market demand for a range of skills based on newspaper job advertisements. However, no proper estimate or projection is available to determine the number of high, medium, and lower level skills demanded in the labour market during a given period of time. If such a human resource demand projection was available, it would have been possible to develop the required skills more precisely to meet the market demand. During the National Employment Policy formulation exercise, this issue was discussed and the view of the employers and the trade unionists as well as other stakeholders was that arriving at a reliable human resource demand projection was a difficult task given the changes in the economy and the catastrophic conditions such as the fall of global money markets due to recession. One of the longstanding issues with regard to supply and demand for skills in the labour market is the mismatch of available skills and the skills demanded. Several studies have highlighted that the youth who join the labour market annually after leaving formal education are not equipped with the type of skills demanded in the labour market. It is clear that the number of youth who join the labour market after completing school education up to GCE (O/L) or (A/L) is higher than the number that join the labour market after completing vocational or technical education. It is also important to pay attention to those who qualify to enter the universities on the basis of performance at the GCE (A/L) but fail to gain admission due to intense competition and the limited number of places available. The GCE (A/L) is a highly competitive examination conducted annually in Sri Lanka for the sole purpose of selecting suitable candidates to follow degree programmes conducted by the state universities. Students who sit the GCE (A/L) examination generally follow private tuition classes conducted by various individuals in addition to following the syllabus in their respective schools. During the past few years the number admitted annually to state universities on the basis of performance at the GCE (A/L) had been in the region of 18-20 per cent of the number qualified. This situation has left about 50- 60,000 youth who have passed the GCE (A/L) in the lurch. Majority of these youth join the labour market with limited prospects of securing a job of their
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choice. Studies show that there is a mismatch of jobs expected by these youth (example: clerical jobs, teaching, nursing etc) and the type of jobs available. On the other hand one also finds a situation where private sector employers prefer to employ GCE (A/L) qualified youth who have strong communication skills in English, and who demonstrate a positive attitude. During the past few years there has been a proliferation of foreign degree programmes offered in the English medium by a multitude of private sector institutes. However, majority of the youth who fail to gain admission to state universities are not able to afford private university education. In this context the available options are the Higher National Diploma programmes in Business Studies, Accounting, Engineering etc conducted by the technical education institutes that come under the Department of Technical Education & Training. Ironically, most youths who fail to gain admission to a state university tend to select the option of registering for an external degree offered by the state universities. It should be noted that the external degree programmes hardly equip the participants with marketable skills and therefore the external degree holders have limited prospects in securing employment in the private sector.

4.

FITTING GENERAL EDUCATION AND VOCATIONAL AND TECHNICAL EDUCATION

General education in Sri Lanka from Grades 1 to 13 is provided through the government schools based on a curriculum prepared by the National Institute of Education, which comes under the Ministry of Education. The ministry also manages a group of schools known as National Schools which have greater access to resources compared with provincial schools managed by the Provincial Councils elected in terms of the provisions of the Thirteenth Constitutional Amendment. A major issue that seems to affect the quality of the students who leave the school education system in Sri Lanka is that their lacking of job-related skills because the curriculum followed in schools has no link whatsoever with the vocational and technical education system. And although the school education system imparts knowledge and skills in reading and writing in ones mother tongue and basic mathematics and English, most of the rural schools do not have teachers and facilities to teach science, English

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and mathematics (Ranasinghe, 2008). Also, though a few rural schools have access to computers, the shortage of IT trained teachers appears to be a serious constraint. It is estimated that less than 25% of the students enrolled at the primary level proceed to GCE (O/L) and about 40% drop out from schools before reaching Grade 6. One might opine that these youths must possess certain vocational or technical skills if they are to secure employment after joining the labour market. It would therefore be necessary to take steps to introduce vocational subjects such as masonry, carpentry, plumbing etc to the school curriculum and impart those skills through the school education system. Similarly the school curriculum may incorporate subjects such as computer hardware and software, culinary science, agri-business, fishing and marine science including diving and sea sports, tourism and hotel management, vehicle repairing etc that can help the youth in securing suitable employment. The introduction of a National Vocational Qualification (NVQ) framework in the recent past led to standardizing the training programmes conducted by the state sector TVET institutions such as National Apprenticeship & Industrial Training Authority (NAITA) and recognized training institutions outside the state sector. This positive step had enabled NVQ certified youth to compete well in the labour market. The NVQ framework had also recognized prior training which had provided an added advantage for the youths to obtain certification to be able to compete in the job market locally and abroad. However, a matter that deserves the attention of the policy makers is the limited number of youth who enrol in vocational and technical courses and the increasing number of students who give up their courses half way. Thus, one might make a case for making vocational and technical education more attractive for school leavers through a vigorous social marketing campaign.

5.

GROWTH SECTORS IN THE ECONOMY AND AVAILABILITY OF SKILLS

The dawn of peace in Sri Lanka after defeating terrorism in May 2009 created an environment which was conducive for investments and growth. Particularly, infrastructure development projects in the war affected Northern and the Eastern provinces and acceleration of tourism-related building projects had created employment opportunities for skilled personnel mainly in the construction industry. However, due
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to shortage of skills in the construction industry, most of the projects in the North and the East had to depend on migrant contract labour. Studies have revealed that there is a serious gap between the demand and the supply of skills in the growth sectors of the economy. The Mahinda Chintana- Vision for the Future policy document had specified five economic hubs as leading sectors of the economy comprising of navel and maritime, aviation, commercial, energy, and knowledge hubs. It is recognized that there is a serious shortage of skills demanded in the five growth hubs, particularly in the navel and maritime, aviation, energy, and knowledge hubs. The commercial hub comprise of several sub-sectors such as banking, finance and insurance, import and export trade, telecommunication, tourism etc. for which the types of skills required may vary between high and intermediate level skills as well as intermediate and low level skills. For instance, in the insurance industry there is a serious dearth of underwriters, which comes under the category of high level skills. In the tourism industry there is a growing demand for low level skills such as room boys, cleaners, gardeners and waiters, which cannot be fulfilled immediately. The tourism industry employs about 150,000 at present. With the high growth potential in the tourism industry, it is envisaged that the industry is likely to create about 500,000 new jobs in the course of next 3-4 years. However, there is no comprehensive and integrated plan to develop the human resources required for the tourism industry. The telecommunication industry has also recorded shortages in skills at different levels. It was noted that there is a high degree of competition among the service providers to attract skilled personnel. This has led to problems like high level of employee turnover in the telecom industry. IT and BPO industry in Sri Lanka has sustained a significant growth trend during the past three years. The industry currently employs about 65,000 skilled workers and it is estimated that about 10,000 trained IT personnel are required annually. The IT/ BPO industry in Sri Lanka is currently a US $450 million operation and the industry has set a turnover target of US $ one billion to be reached by 2015. It is estimated that the industry will require 120,000 skilled IT workers in order to reach the set target. However, the capacity of the national universities to produce IT professionals is limited; about 3000 per annum. The Sri Lanka Institute of Information Technology (SLIIT), which is a degree awarding private institute, also produces about 700 IT graduates
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annually. While the limited investment in higher education has restricted the capacity of state universities to produce a higher number of IT professionals, steps have been taken by the SLIIT to expand its capacity. Another HR related issue that seems to affect the IT/BPO industry is the problem of brain drain among young IT professionals. The industry has already lost a good number of trained IT professionals due to brain drain adding to cost of new recruitment and training. Sri Lankas capacity to reach the status of a knowledge hub is restrained by the limited capacity of the national universities to produce an adequate number of knowledge workers. Thus, it would be important to make space for private universities with foreign collaboration to start operations in Sri Lanka targeting specific skills. It is also important to get the private sector involved more actively to work in collaboration with the state sector institutions to produce competitive graduates within the National Qualifications Framework that is already approved.

6.

OPTIMIZING HUMAN RESOURCE UTILIZATION IN SRI LANKA

In Sri Lanka little or no attention has been given for optimizing the utilization of human resources. This could be seen largely in the public sector and to a limited extent in the private sector. The lack of an integrated plan for development and utilization of human resources and the dominant mindsets which do not support change are among the reasons for the prevailing situation. As discussed earlier several issues have contributed towards sub-optimization of human resources in Sri Lanka. They include such issues as structural imbalances in the labour market, lack of integration of knowledge and skills and limited focus on the right attitudes, less opportunities of higher education for the youth and the poor status of women workers. Some of these problems have been in existence for several years. However, no consistent efforts have been made to address the issues to pave the way for optimum utilization of human resources. There has to be a sufficient growth of employment opportunities in growth sectors of the economy to absorb those joining the labour market into productive jobs. This depends on the level of investment in value creating activities. As noted earlier Sri Lanka has remained more or less a low value adding and low tech economy. Among Sri Lankas manufacturing operations only about 1.5 per cent comes under high tech industries. It is observed that to raise this proportion to 15-20 per cent, Sri Lanka
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needs about 18,000 science and technology researchers. But the number of researchers currently available is about 4000. Hence, there is a strong case to increase the level of investment in science and technology research. In order to transform the technological standard of manufactures that are exported, Sri Lanka has to make a reasonable investment in Research & Development (R&D). At present our annual investment in R&D is less than 0.18 per cent of the GDP. In India investment in R&D is about 0.61 per cent of the GDP. In Malaysia it is about 0.93 per cent and in China it is about 1.34 per cent and in Singapore R&D investment is about 2.36 per cent of the GDP. As a result of significant investment in R&D these countries have been able to raise the standards of their products and be more competitive in the global market. The level of skills of the work force has also been raised to match the technology, which has resulted in increased labour productivity and incomes. The private sector in Sri Lanka has a role to play in optimizing the human resource potential. In addition to taking steps to develop the capacity of their employees through training and development interventions, the private sector is expected to work jointly with the government in promoting national level initiatives in the area of HRD. It is important to learn from good practices adopted by countries such as India, China, Singapore, Korea and Malaysia in this regard.

7.

CONCLUSION

Sri Lanka is currently at the threshold of accelerated development after achieving peace. In the emerging environment there is a tremendous potential to develop a labour force with a right combination of knowledge, skills and attitudes. There has to be fresh thinking at the macro level for adopting an integrated and holistic approach towards development and application of human capacity. Thus, a paradigm shift in policy prescriptions as well as action initiatives is necessary for us to make a major breakthrough and position Sri Lanka among the countries that continuously add value to their people, products and processes.

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REFERENCES Central Bank of Sri Lanka, Annual Report 2010, Colombo: Sri Lanka Department of Census and Statistics, Sri Lanka Labour Force Survey- Annual Report, 2009, Colombo: Sri Lanka Dissanayake, Dharma (2005), Female Participation of Informal Economic Activities in Sri Lanka, Department of Census and Statistics, Colombo: Sri Lanka Draft National Human Resources and Employment Policy, 2011, Secretariat for Senior Ministers, Colombo: Sri Lanka Government of Sri Lanka, Mahinda Chintana- Towards a New Sri Lanka 2005, Colombo: Sri Lanka Ranasinghe, Sudatta. (2008), Issues of Managerial and Organizational Capacity in a Devolved System of Governance: The Case of General Education in Sri Lanka, VISTAS, Journal of Humanities and Social Sciences, The Open University of Sri Lanka: Nugegoda: Sri Lanka Tertiary and Vocational Education Commission, Labour Market Information Bulletin, Vol. 02/09- December, 2009; Colombo: Sri Lanka The World Bank, The Towers Of Learning- Performance, Peril and Promise of Higher Education in Sri Lanka, July 2009, Colombo: Sri Lanka (Footnotes)
1

ILO Technical Note on the Formulation of a National Human Resources and

Employment Policy for Sri Lanka, (2011), ILO Office: Colombo

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IMPACT OF SUPERVISOR SUPPORT AND WORK SCHEDULE FLEXIBILITY ON JOB STRESS AND TURNOVER INTENTION OF SOFTWARE DEVELOPERS IN SRI LANKA
Vathsala Wickramasinghe Professor, Department of Management of Technology, Faculty of Engineering, University of Moratuwa, Sri Lanka. vathsala@mot.mrt.ac.lk

ABSTRACT This paper presents and discusses the results of an empirical study that investigated the impact of supervisor support and work schedule flexibility on job stress and turnover intention. In the study, supervisor support and work schedule flexibility are considered as independent variables, job stress as the mediator and turnover intention as the dependent variable. 350 self-administered survey questionnaires were distributed among software developers full-time engaged in offshore outsourced software development firms. 232 valid responses were returned, yielding a response rate of 66%. The three-step regression analysis procedure was used to test mediation hypotheses using SPSS. It was found that job stress partially mediates the relationship between supervisor support and turnover intention. Further, it was found that job stress fully mediates the relationship between work schedule flexibility and turnover intention. The results of the study imply that the increased levels of supervisor support could lead to decrease in job stress, which subsequently could lead to decrease in turnover intention. Similarly, the increased levels of work schedule flexibility could lead to decrease in job stress, which subsequently could lead to decrease in turnover intention. Key words: Job stress, supervisor support, work schedule flexibility

1.

INTRODUCTION

Job stress is identified as an important occupational health problem (Johnson et al., 2005). Evidence suggests that high levels of unmanaged job stress not only undermine
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quality, productivity, creativity of employees but also influence employees health, well-being and morale (Burton et al., 2008). Therefore, some of the most important topics of research in human resource management today revolve around specific policies, practices and programmes that appear to influence job stress (e.g. Dooris et al., 2008). When it comes to addressing stress at workplace, it is necessary to evaluate different strategies available at the organizational level to find out strategies that reduces job stress (see Le Fevre et al., 2006). However, very little evidence is available on which to base the organizational focused stress management strategies and very little clear information is available on the relative effectiveness of various strategies in general (see Le Fevre et al., 2006). In the above context, this paper explores effects of two contrasting initiatives, i.e., instrumental support (i.e., work schedule flexibility) and social support (i.e., supervisory support) on job stress. Therefore, this paper investigates the impact of supervisor support and work schedule flexibility on job stress and turnover intention. In the study, supervisor support and work schedule flexibility were considered as independent variables, job stress as the mediator and turnover intention as the dependent variable. Therefore, the study investigated the mediating effect of job stress on the relationship between supervisor support/work schedule flexibility and turnover intention of software developers attached to offshore outsourced software development firms in Sri Lanka. The literature suggests that the high level of occupational identification among software developers is suggestive of an aspirant profession and a key occupation to examine in future studies of knowledge workers (Scholarios and Marks, 2004). They are identified as one of the critical resources of a country in its quest to become a technologically advanced nation. Further, they enjoy a considerable labour market power, which has encouraged their mobility across organizations rather than promoting loyalty to a single organization (Scholarios and Marks, 2004). During the last decade Sri Lanka witnessed a growth of offshore outsourced software development firms in the country. The literature provides evidence for both extensive opportunities created for software developers as well as increased stress in the workplace (Aziz, 2004). However, the literature suggests that attitudes of software developers towards the characteristics of work organization in the offshore outsourced sector have, yet, not been systematically examined (Aziz, 2004). Therefore, the specific objective of the study is to investigate the impact of supervisor support and work schedule flexibility on job stress and turnover intention.
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2. 2.1

LITERATURE REVIEW AND HYPOTHESIS Job Stress

Job stress is generally defined in literature as an employees feeling of job-related hardness, tension, anxiety, frustration, worry, emotional exhaustion and distress (Armstrong and Griffin, 2004). In other words, work related variables (job stressors), when interpreted by the individual (cognitive interpretation), may lead to stress (Dua, 1994). Therefore, stressors denote the external force or situation acting on the individual - objective events. Stress denotes the deformation or changes produced in the individual as a result of those forces - subjective experience of the event (Le Fevre et al., 2003). Further, job stress is a mental and physical condition and becomes problematic when it remains unresolved because of lapses in an individuals adaptive capacity (Erkutlu and Chafra, 2006; Dua, 1994). When this happens, the individual becomes disorganized, disoriented and therefore becomes less able to cope (Cooper and Marshall, 1976; Erkutlu and Chafra, 2006; Le Fevre et al., 2006). The literature suggests that a high level of stress is associated with decreased personal health and impaired individual functioning in the workplace in terms of decreased capacity to perform, dampened initiative and reduced interest in work, increased rigidity of thought, and a lack of concern for the organization and colleagues (e.g. Cooper and Marshall, 1976; Dua, 1994; Erkutlu and Chafra, 2006). 2.2 Work Schedule Flexibility

Work schedule flexibility refers to a policy in which the traditional fixed times that fulltime employees start and finish the working day are replaced by a framework within which employees are allowed some freedom to choose their starting and finishing times (Golembiewski et al., 1975; Olorunsola and Ibegbulam, 2003). Work schedule flexibility is in operation as a part of human resource benefit package offered to employees (Scandura andLankau, 1997). The basic model of work schedule flexibility usually consists of five interrelated components although there are a number of variations in flexible time arrangements: (1) a band within which all hours must be worked (e.g. 6.00 am to 6.30 pm); (2) a core time during which all employees are required to be working (e.g. 10.00 to 12.00 am and 2.00 to 4.00 pm); (3) a flexible band of hours before, after, or in between core times that allows employees to exercise designated
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options regarding their presence in, or absence from, the work place; (4) banking, which allows a carry-over of surplus or deficient hours worked; and (5) variability of schedule, i.e. the freedom of employees to vary working hours from one period to another without prior approval from their supervisor. The availability of flexible work scheduling gives employees greater control over work and family matters, thereby helping employees to manage the often conflicting demands of work and non-work domains (Anderson et al., 2002).The work schedule flexibility is identified as the most frequently utilised and preferred arrangement by employees of the offshore outsourced software development industry in Sri Lanka (Wickramasinghe and Jayabandu, 2007). Wickramasinghe and Jayabandu (2007) also reports that software developers experience reduction in stress with the implementation of flexible work schedules. Therefore, in this study, work schedule flexibility is investigated as a form of instrumental support received formally through organizational initiatives, which could impact on job stress experienced by employees. 2.3 Supervisor Support

Supervisor support describes the extent to which a supervisor is sensitive to an employees non-work responsibilities and is accommodating when conflicting work and non-work demands arise (Carlson and Perrew, 1999). Hence, scholars suggest that supervisor support may make ones work situation less stressful by providing emotional support, instrumental aid or greater control over ones situation (e.g. Anderson et al., 2002; Carlson and Perrew, 1999). Past researchers further suggested that support from ones supervisor is instrumental in reducing unfavourable effects of job stress by providing emotional support to increase the stressed individuals selfconfidence (e.g. Russell et al., 1987) and self-esteem (e.g. Wong and Cheuk, 2005). Likewise, relevant and useful informational support from the supervisor helps the stressed individuals to cope effectively with job-related problems, which in turn reduce job stress one is experiencing (Thomas and Tymon, 1994). 2.4 Turnover Intention

Behavioural intentions constitute the most immediate determinant of actual behaviour, in the context of this study, employee turnover intention (e.g. Bluedorn, 1982; Steel and Ovalie, 1984). Steel and Ovalie (1984) showed an existence of a strong relationship
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between turnover intention and turnover. Some scholars (such as Bluedorn, 1982) recommended using intent to leave or intent to stay attitudes rather than actual staying or leaving behaviour as collecting such information is relatively less expensive than collecting actual turnover. The literature suggests that workplace practices (such as work schedule flexibility and supervisor support) could reinforce employees beliefs that the organization values their contribution and cares about their well-being, which in turn reduce turnover intention (Eisenbeger et al., 1990). Based on the aforementioned reasons, in this study turnover intention is used as the dependent variable. A number of studies indicated that IT personnel exhibit little loyalty to their organizations and may well be tempted to leave a firm for anticipated higher rewards elsewhere as their skills are highly transferable across different firms and even different industries (Adya and Kaiser, 2005). Hence, organizations today find difficulties in attracting and retaining IT personnel. Studies that have examined the work in the outsourcing environment identify two common features of these organizations (Pearce, 1993). On the one hand, work in the outsourcing environment is highly monitored and controlled by management. On the other hand, these organizations consist of empowered workers who work in a positive work environment. These empowered workers customize work to the needs of customers (Batt and Appelbaum, 1995). Therefore, the work environment is highly controlled and performance is closely monitored and measured against targets. However, employees are encouraged to take responsibility for both their teams and their own performance (Frenkel et al., 1999). In this work environment, an important problem faced by the management is high labour turnover (Frenkel et al., 1999). The Sri Lankan outsourcing sector also suffers from high labour turnover (LIRNEasia, 2006). 2.5 Hypotheses

Drawing from the literature reviewed above, it is proposed for this study that the direct relationship between work schedule flexibility and turnover intention will be mediated by job stress and the direct relationship between supervisor support and turnover intention will be mediated by job stress. Figure 2.1 illustrates the proposed relationships. Based on the conceptual framework developed for the study, following hypotheses were proposed:
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H1a: H1b: H2a: H2b: H3: H4a: H4b:

Work schedule flexibility will be negatively related to turnover intention. Supervisor support will be negatively related to turnover intention. Work schedule flexibility will be negatively related to job stress. Supervisor support will be negatively related to job stress. Job stress will be positively related to turnover intention. Job stress will mediate the relationship between work schedule flexibility and turnover intention. Job stress will mediate the relationship between supervisor support and turnover intention.

Figure 2.1 Conceptual Framework

3. 3.1

METHOD Sample

A random sample of software developers attached full-time to offshore outsourced software development firms was selected. The list of software development firms registered and operate under Board of Investment of Sri Lanka (BOI) was used. By the end of 2009 there were about 36 firms that are engaged purely in software development. Of the 350 questionnaires distributed among randomly selected individuals whose main job function is software development, 232 valid responses were returned. The response rate was 66 per cent of the original sample.
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With regard to demographics of the respondents, 66% were male and 44% were female. 47% were single and 53% were married. The mean age was 30 years (SD=2.86; min.= 27 years; max.=40 years). The average number of years of service in the present firm was three years (SD=1.55; min=11 months; max=7 years); the average number of years of service in the IT industry was seven years (SD=1.94; min.= 11 months; max.=11 years). 83% had Bachelors degrees or equivalent professional qualifications; 17% had postgraduate degrees. 82% reported that they do not have dependents. 3.2 Data Collection Instrument and Measures

A self-administered survey questionnaire was chosen as the mode for data collection. In constructing the questionnaire, scale items from existing research were used. Therefore, content validity of the questionnaire was protected by embodying sufficient number of items related to each variable in the study. The questionnaire was piloted prior to final distribution. The standardized estimates and reliability statistics for all the variables are provided in Table 3.1. Table 3.1 Standardized Estimates and Reliability Statistics Standardised Cronbachs alpha Job stress Turnover intention Supervisor support .758 .755 .696 2.04 2.02 1.53 1.93 67.95 67.45 76.67 64.49 .519 .641 .521 .604 99.42*** 76.86*** 59.64*** 64.53*** Eigen value Explained variation KMO adequacy Bartletts

sampling Chi-Square

Work schedule flexibility .717

Note: *** p<.001.

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Item measures used in the questionnaire were as follows: Supervisor support was measured by the six items from Anderson et al. (2002). Respondents reported on a 5-point Likert scale from (5) very often to (1) never. Work schedule flexibility was measured by the three items that inquired into the level of usage of periodical flexi time, daily flexi time, and time offs. Respondents reported on a 5-point Likert scale from (5) very often to (1) never. Job stress was measured using the five items from Lambert et al., (2006). Responses were reported on a 5-point Likert scale from (5) very often to (1) never. Turnover intention was measured by the four items from Bluedorn (1982). Respondents reported on a 5-point Likert scale from (5) very often to (1) never. The higher number indicates a higher level of quitting intention. In the analysis three demographic characteristics (gender, marital status, tenure) and one firm characteristic (firm size) were controlled. The demographic characteristics were gender (female=0, male=1), marital status (single=0, married=1), age (continuous scale), the highest level of education (degree or equivalent=0, postgraduate degree=1), and the years of experience in the present workplace (continuous scale). In addition, firm size is also added as a control variable. Firm size was assessed by the natural logarithmic transformation of the number of full-time employees in the organization. 3.3 Data Analysis Procedure

The three-step regression analysis procedure recommended by Baron and Kenny (1986) was used to test mediation hypotheses. According to Baron and Kenny (1986), the following conditions must be met to support a mediating relationship. First, the independent variable must be significantly associated with the dependent variable. Second, the independent variable must be significantly associated with the mediator. Finally, after the mediator is entered, the relationship between the independent and dependent variables should either disappear (full mediation) or significantly diminish (partial mediation).
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4.

RESULTS

Table 4.1 shows means, standard deviations and zero-order correlations between all the variables. As can be seen in Table 4.1, work schedule flexibility and supervisor support were negatively related to turnover intention. Job stress was positively related to turnover intention. In analysing the mediator effect of job stress, the hypotheses were tested by estimating a series of multiple regression equations following the procedure presented in the section on data analysis procedure. The results are shown in Table 4.2 and Table 4.3. The results relating to work schedule flexibility- job stress- turnover intention relationship were shown in Table 4.2. As can be seen in Table 4.2, the conditions for mediation were met. Work schedule flexibility significantly negatively associated with turnover intention supporting H1a. Work schedule flexibility significantly negatively associated with job stress supporting H2a. Job stress significantly positively related to turnover intention supporting H3. After job stress is entered, the relationship between work schedule flexibility and turnover intention disappears (=-.272, p<.01 to =.201, p>.10), suggesting full mediation. Critical ratios were also reported in Table 4.2. Accordingly, the mediation hypothesis (H4a) that job stress mediates the relationship between work schedule flexibility and turnover intention is supported by the data.

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Table 4.1 Correlations

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Table 4.2

Summarised Results: Job Stress as a Mediator in the Work Schedule Flexibility and Turnover Intention Relationship

The results relating to supervisor support-job stress-turnover intention relationship were shown in Table 4.3. As can be seen in Table 4.3, the conditions for mediation were met. Supervisor support significantly negatively associated with turnover intention supporting H1b. Supervisor support significantly negatively associated with job stress supporting H2b. Job stress significantly positively related to turnover intention supporting H3. After job stress is entered, the relationship between supervisor support and turnover intention significantly diminishes (=-.416, p<.001 to =-.302, p<.01), suggesting partial mediation. Critical ratios were also reported in Table 4.3. Accordingly, the
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mediation hypothesis (H4b) that job stress mediates the relationship between work schedule flexibility and turnover intention is supported by the data.

Table 4.3

Summarised Results: Job Stress as a Mediator in the Supervisor Support and Turnover Intention Relationship

5.

DISCUSSION AND RECOMMENDATION

Organizations identify the need of addressing job stress. Drawing on previous research, this study investigated the effect of two major forms of support available in the
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organizational environment, i.e., instrumental support and social support in reducing job stress and in turn reducing turnover intention. In the study, supervisor support is considered as an informal support and work schedule flexibility as a formal policy initiative that could influence job stress and in turn turnover intention. The study treated work schedule flexibility and supervisor support as independent variables, job stress as a mediator and turnover intention as a dependent variable. The study investigated whether supervisor support mediates the positive relationship between job stress and turnover intention. It was found that job stress partially mediates the relationship between supervisor support and turnover intention. Therefore, as expected, supervisor support was identified as an important support that serves as a mediator in the positive relationship between job stress and turnover intention. The findings support previous research that reported support from immediate supervisor helps individuals to reduce stress (e.g. Anderson et al., 2002). Hence, the findings of the study imply the importance of supportive organizational context created by the immediate supervisor in reducing job stress and in turn turnover intention. Further, the study investigated whether work schedule flexibility mediates the positive relationship between job stress and turnover intention. It was found that job stress fully mediates the relationship between work schedule flexibility and turnover intention. Therefore, work schedule flexibility was also identified as an important support that serves as a mediator in the positive relationship between job stress and turnover intention. The findings support previous research that reported the usage of flexible work scheduling helps individuals to reduce stress (e.g. Wickramasinghe and Jayabandu, 2007). Hence, the findings of the study imply the importance of supportive organizational policies (i.e., work schedule flexibility) in reducing job stress and in turn turnover intention. In the current global economic environment, organizations are continually trying to discover value-added initiatives to strategically enhance the performance of their organizations and employees. Therefore, some of the most important topics of research in human resource management revolve around specific policies, practices and programmes that appear to influence employee performance. Therefore, it is expected that the findings of this study will provide useful information for both practitioners and academicians to better understand the nature of strategies to be adopted in offshore
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outsourced software development firms as the results of the study implied that increased levels of supervisor support could lead to decrease in job stress, which subsequently could lead to decrease turnover intention. Similarly, increased levels of work schedule flexibility could lead to decrease job stress, which subsequently could lead to decrease in turnover intention.

REFERENCES Adya, M. and Kaiser, K.M. (2005). Early determinants of women in the IT workforce: a model of girls career choices. Information Technology & People, 18(3): 230-259. Anderson, S.E., Coffey, B.S. and Byerly, R.T. (2002). Formal organizational initiatives and informal workplace practices: links to workfamily conflict and job-related outcomes. Journal of Management, 28(6): 787810. Armstrong, G.S. and Griffin, M.L. (2004). Does the job matter? comparing correlates of stress among treatment and correctional staff in prisons. Journal of Criminal Justice, 32(6): 577592. Aziz, M. (2004).Role stress among women in the Indian information technology sector. Women in Management Review, 19(7): 356-363. Baron, R. and Kenny, D. (1986). The moderatormediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51: 11731182. Batt, R. and Appelbaum, E. (1995). Worker participation in diverse settings: does the form affect the outcome? If so, who benefits?, British Journal of Industrial Relations, 33(3): 353-378. Bluedorn, A.C. (1982). A unified model of turnover from organizations, Human Relations, 35: 135-153. Burton, W.N., Schultz, A.B., Chen, C-Y.andEdington, D.W. (2008). The association of worker productivity and mental health: a review of the literature. International Journal of Workplace Health Management, 1(2): 78-94. Carlson, D.S. and Perrew, P.L. (1999).The role of social support in the stressorstrain relationship: an examination of work-family conflict. Journal of Management, 25(4): 513540.
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Cooper, C.L. and Marshall, J. (1976). Occupational sources of stress: a review of the literature relating to coronary heart disease and mental ill health. Journal of occupational psychology, 49(1):11-28. Dooris, M., Sedgley, L. and Dugdill, L. (2008).A reflective analysis of the development of a regional workplace health strategy in the North West of England. International Journal of Workplace Health Management, 1(3): 209-218. Dua, J.K. (1994). Job stressors and their effects on physical health, emotional health, and job satisfaction in a university. Journal of Educational Administration, 32(1), 59-78. Eisenberger, R., Fasalo, P. and Davis-LaMastro, V. (1990).Perceived organizational support and employee diligence, commitment and innovation. Journal of Applied Psychology, 75: 51-59. Erkutlu, H. V. and Chafra, J. (2006). Relationship between leadership power base and job stress of subordinates: example from boutique hotels. Management Research News, 29(5): 285-297. Frenkel, S., Korczynski, M., Shire, K. and Tam, M. (1999).On the Front Line: Organization of Work in the Information Economy. New York, NY: Cornell University Press. Golembiewski, R.T., Yeager, S. and Hilles, R. (1975). Factor analysis of some flexitime effects: attitudinal and behavioral consequences of a structural intervention. Academy of Management Journal, 18(3): 500-509. Johnson, S., Cooper, C., Cartwright, S., Donald, I., Taylor, P. and Millet, C. (2005).The experience of work-related stress across occupations. Journal of Managerial Psychology, 20(2): 178187. Lambert, E.G., Hogan, N.L., Camp, S.D. and Ventura, L.A. (2006).The impact of workfamily conflict on correctional staff: a preliminary study. Criminology and Criminal Justice, 6(4): 371-387. Le Fevre, M., Kolt, G.S. and Matheny, J. (2006). Eustress, distress and their interpretation in primary and secondary occupational stress management interventions: which way first?.Journal of Managerial Psychology, 21(6): 547-565.
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Le Fevre, M., Matheny, J. and Kolt, G.S. (2003).Eustress, distress, and interpretation in occupational stress. Journal of Managerial Psychology, 18(7): 726-744. LIRNEasia (2006).A baseline sector analysis of the business process outsourcing industry of Sri Lanka, Colombo: Author. Olorunsola, R. and Ibegbulam, I.J. (2003).Flexible working hours for academic librarians in Nigeria. Library Review, 52(2): 70-75. Pearce, J.L. (1993). Toward an organizational behavior of contract laborers: their psychological involvement and effects on employee co-workers. Academy of Management Journal, 36(5): 1082-1096. Russell, D.W., Altmaier, E. and Van Velzen, D. (1987). Job-related stress, social support, and burnout among classroom teachers. Journal of Applied Psychology, 72(2): 269274. Scandura, T.A. and Lankau, M.J. (1997).Relationships of gender, family responsibility and flexible work hours to organizational commitment and job satisfaction. Journal of Organizational Behavior, 18(4): 377-391. Scholarios, D. and Marks, A. (2004).Work-life balance and the software worker. Human Resource Management Journal, 14(2): 54-74. Steel, R.P. and Ovalie, N.K. (1984).A review and meta-analysis of research on the relationship between behavioural intentions and employee turnover. Journal of Applied Psychology, 69: 673-686. Thomas, K.W. and Tymon, W.G. (1994).Does empowerment always work? understanding the role of intrinsic motivation and personal interpretation. Journal of Management Systems, 6(3): 1-13. Wickramasinghe, V. and Jayabandu, S. (2007). Towards workplace flexibility: flexitime arrangements in Sri Lanka. Employee Relations, 29(6): 554-575. Wong, K.S. and Cheuk, W.H. (2005). Job-related stress and social support in kindergarten principals: the case of Macau. International Journal of Educational Management, 19(3): 183-196.

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GRANDEUR OF THE GROUNDED THEORY: UNEARTHING THE UNIQUENESS

Ajantha S. Dharmasiri Postgraduate Institute of Management, University of Sri Jayewardenepura, Borella, Colombo 8. ajantha@pim.lk

ABSTRACT The purpose of this study was to explore the nature of grounded theory where the researchers can move to the field with an open mind. Let the data emerge the theories is the motto behind such a distinct approach. The researcher proposes the argument that grounded theory offers a unique approach in unearthing the rich patterns of behaviour that would otherwise have been hidden. A grounded theory is one that is inductively derived from the study of the phenomenon it represents. Developed by Glaser and Strauss (1967) and popular among many social scientists, it is grounded because it is related to, emerges out of, is created through, and grounded on empirical data. According to Sarantakos (1993), the centre of its interest is not collecting volumes of data but organizing the variety of thoughts and experiences that researcher gathers during the analysis of data. The researcher discusses the way to judge the groundness of a theory and the steps involved in a typical grounded theory approach. As the empirical component, the study on strategic orientation of HR managers in South Asia by Dharmasiri (2007) is critically evaluated in explaining how the grounded theory can be effectively used in management research. The researcher concludes that the grounded theory rises above other qualitative research approaches as a distinct way of exploring and interpreting reality. Key words: Grounded theory, organizational commitment, qualitative research
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1.

INTRODUCTION

Qualitative research refers to any kind of research that produces findings not arrived at by means of statistical procedures or other means of quantification. Grounded theory approach falls into this category. A grounded theory is one that is inductively derived from the study of the phenomenon it represents. That is, it is discovered, developed, and provisionally verified through systematic data collection and analysis of data pertaining to that phenomenon. As such, data collection, analysis and theory, stand in reciprocal relationship with each other. Grounded theory offers a fresh approach, where the researchers can move to the field with an open mind. Let the data emerge the theories is the motto behind such a distinct approach. As such, the writer proposes the argument that grounded theory offers a unique approach in unearthing the rich patterns of behaviour that would otherwise have been hidden.

2.

GROUNDED THEORY EXPLORED

Grounded theory was developed by Glaser and Strauss (1967) and has become popular among many social scientists. It is grounded because it is related to, emerges out of, is created through, and grounded on empirical data. According to Sarantakos (1993), the center of its interest is not collecting volumes of data but organizing the variety of thoughts and experiences that the researcher gathers during the analysis of data. The objective of the grounded theoretical approach, as interpreted by Wells (1995), is an explanation of the variability in social interactions, the social structural conditions that support the interactions, the consequences of the interactions and the conditions that support changes in interactions over time. Grounded theory grew out of the theoretical framework of symbolic interaction (Blumer, 1969; Bowers, 1988). This framework can be thought of as the lens or the glasses through which one views the world. In the case of symbolic interaction, the framework arises from sociology and proposes that individuals interpret their experience and create meaning out of those experiences (Bogdan & Biklen, 2003). Whilst there are a variety of applied interpretive assessments of what constitutes grounded theory, it would seem that the one developed by Strauss and Corbin (1990) is referenced
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most commonly by researchers as being essentially the clearest theoretical exposition of this important research tradition (Miller & Fredericks, 1999). Strauss and Corbin define a grounded theory as one that is; .......inductively derived from the study of the phenomenon it represents. That is, it is discovered, developed and provisionally verified through systematic data collection and analysis of data pertaining to that phenomenon. Therefore, data collection, analysis and theory stand in reciprocal relationship with each other. (Strauss & Corbin 1990: 23) It has been suggested by a number of authors that grounded theory has been and continues to be the research methodology of choice in the qualitatively oriented research fields of medicine, nursing, social work and education (Wells, 1995, Miller & Fredericks, 1999). The common socio-behavioural foundation that these human science research fields share with the study of organizationally contexted human interaction suggests that grounded theory may also be a useful methodology for application in the investigation of phenomena in this later domain. It is the extent of grounded theory is practical and theoretical suitability as a form of qualitative inquiry into organizationally contexted phenomena that we are seeking to evaluate.

3.

THE GENERATION OF GROUNDED THEORY

The foundation of the grounded theory process is the requirement for a constant comparative analysis of the qualitative data which has been collected and, in turn, the dynamic interrelationship that this has with hypothesis development and ultimately, theory generation. In grounded theory, data collection and theory generation are considered as two parts of the same process (Robrecht, 1995; Glaser, 1978; Glaser & Strauss, 1967). Bearing in mind that a fine balance between prescription and generality is required, based on Glaser & Strausss lean structures, the following is an interpretation of the steps to the generation of grounded theory: a) Data collection - As grounded theory is a tool for qualitative investigation, the commonly referenced forms of data collection are social interaction, field studies, participant observation and semi-structured interviews. This is not to suggest
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that other techniques for capturing qualitative data on human interaction may not be as or more appropriate in a given situation. b) Data analysis - Grounded theory focuses on the constant comparison of the data leading to coding and then categorisation of the data. Hypothesis formulation can (and is perhaps expected to) occur before, during, and after, the initial process of data collection has occurred. Constant comparison focuses on the simultaneous conceptualisation and assessment of the similarities and differences in social interactions in search of a core idea that could explain variability in interactions (Wells, 1995). This process of data collection, data analysis and hypothesis is interrelated and cyclical in that each may influence the other. c) Theory delimitation - once the core idea has been identified, new data on interaction is sought to confirm and disconfirm the elaborated concepts and the relationship among them (Wells, 1995). This process is continued until no new insights into these relationships in terms of the core idea or dimension are revealed. d) Theory definition - Definition of the theory is the final stage of the process. The resulting grounded theory is intended to be a rich, powerful and parsimonious explanation, of the investigated phenomenon (Wells, 1995). The better view seems to be that, as it is a form of inductive reasoning, once a theory has been arrived at, the process itself is complete and testing of the theory is not required to confirm its status as validly grounded (Miller & Fredericks, 1999).

4.

JUDGING THE GROUNDEDNESS OF A THEORY

Glaser & Strauss (1967) and Glaser (1978) propose four criteria for judging a theory as grounded - fit, understanding, generality and control. The concept of fit suggests a theorys applicability to, or coverage of, the data that in turn delimits the boundaries. Understanding is directed to and linked with practical application by researchers and laymen. Generalisation suggests the necessity of balancing theory abstraction and flexibility in application to ensure that the theory is a general guide to multi-conditional, ever changing daily situations (Glaser & Strauss, 1967). Control refers to the capability that the theory provides to the practitioner to assist in the development of hypotheses
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regarding how the practitioner should act in particular situations that they may face (Wells, 1995). Collectively, the guidelines for theory judgment suggested by Glaser & Strauss (1967) seem directed to ensuring that the resultant grounded theory is able to be readily applied in practice by both laymen practitioners and academic researchers. Robrecht (1995 citing Glaser, 1978) suggests ...that the goal of the discovery process is a theoretical description of the basic social process that is most central or problematic to participants involved in the investigation. It appears that the richness of this running theoretical discussion, as Glaser & Strauss (1967) refer to it, is one of the key determinants as to whether one has a grounded theory which credibly explains and gives meaning to the phenomena which has been the subject of the investigative process (Miller & Fredericks, 1999).

5.

CENTRAL CRITERIA OF GROUNDED THEORY

In discussing the uniqueness of the grounded theory, Hilderbrabd (1991) illuminates us by identifying four important criteria that make it different from other qualitative approaches. These are tabulated as given in table1. As Sarantakos (1993) further elaborates, theories are initially developed and then further refined and tested, in a continuous and unending process. This can be summarised as: induction (development of temporary / conditional hypotheses); deduction (derive implications of hypotheses); and verification (testing of the validity of these hypotheses). This work pattern is the basis for the whole research process.

6.

STEPS IN THE GROUNDED THEORY APPROACH

Strauss (1951) illuminates us by offering a logical sequence of steps that can be used in grounded theory approach, as given in table 2. These steps portray a practical sense with a methodological clarity, resulting in a distinct path towards unearthing hidden patterns.
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Table 1. Central Criteria of Grounded Theory Criteria An autonomous unit Interpretation of reality Description The case under investigation is not an amorphous piece of reality but an autonomous unit with its own structure, boundaries and history Scientific interpretation of reality resembles that of an artist. This element suggests that social scientists that employ grounded theory as their guide approach and interpret reality the same way as artists do when they work in their context. Everyday thinking There is continuity from everyday thinking to scientific thinking. Being grounded to data means that grounded theory is close to everyday behaviour and action. Everyday knowledge is an un-renounceable resource, which this theory sets to make a central element of its structure and approach. Development of concepts Openness of social scientific formation of concepts is the feature here. This element suggests that the development of concepts and categories is made in a form that does not demand continuous validity, that is, they change as soon as knowledge of them and their environment changes and as soon as new ideas emerge and new explanations dominate.
Source: Adopted from Hilderbrabd (1991) in Sarantakos (1993)
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Involves the notion that research is directed by the interest of the researcher. Like the artists, social scientists approach reality in an unprejudiced manner.

Primary experience is very significant for the development grounded theory. of

The development of concepts is a process not a structure; it is constantly changing.

Table 2. Steps in the Grounded Theory Approach Importance 1. Identifying indicators in the research topic 2. Studying indicators and comparing them with each other 3. Coding indicators; looking for answers and formulating hypotheses 4. Categorising similar indicators as a class. 5. Naming the class and perceiving it as a coded category, which reflects the indicators similarities, and the smallest common denominator. This is the conceptual code, the concept. 6. Comparing indicators with concepts and with other indicators; this helps to refine them and relate them optimally to the data. 7. Working through more attributes of the categories, refining them, and getting additional information until the codes are tested and saturated, that is until no more new information is gained. 8. Developing and saturating more categories through the process of constant comparisons. 9. Including in the theory, concepts and their attributes developed that way. 10. Further testing, contrasting and comparing, them
Source : Adopted from Sarantakos (1993)
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Details Appropriateness of the indicators Relative patterns No preconceptions or models Classification Emergence of a concept

Refined and optimal relationships with data Similarity of the indicators vs. the degree of saturation

Continuity in comparison

Authenticity Consolidation of the emerged

theories and perhaps refining and changing patterns

In comparison with the other qualitative approaches such as case study research, anthropology and ethnography, action research as well as critical research, the steps mentioned above cannot be clearly identified. As such, grounded theory approach has its own grandeur in offering a unique path towards the exploration of reality. As Nanayakkara (1983) illuminates us, the closer one gets to reality, the more deeply one gets down to the uniqueness of each organizational event.

7.

MANAGERIAL APPLICATION:STRATEGIC ORIENTATION OF HR MANAGERS IN SOUTH ASIA

An application of grounded theory approach in organisational context can be seen in a recent research by Dharmasiri (2007) on strategic orientation. In this particular research, grounded theory procedure and techniques that were used extensively gave more scope to discovery of the patterns related to the strategic orientation. The conceptualisation involved is shown in the concept-indicator model as shown in Figure 1. Figure 1: Concept Indicator Model

Personal Factors Strategic Orientation of HR Manager

Organizational Factors
Source: Dharmasiri, (2007)

According to the research abstract, the research problem was formulated as: With the increased emphasis on human capital as a global trend, what is the extent of strategic orientation of Human Resource Managers in South Asia? The objectives were to identify the personal factors as well as organizational factors that contribute to the strategic orientation of HR Managers and to identify the interactional effects of personal and organizational factors. The scope of the research was limited to selected highperforming organizations inclusive of banks, mobile communication companies and
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conglomerates from Bangladesh, India, Pakistan and Sri Lanka. In-depth interviews were conducted with the Chief Executive Officer, Chief Finance Officer, and the Head of HR of each company. Based on the personal and organizational factors that emerged through data in relation to the strategic orientation of HR Managers, the emergent model has been depicted in figure 2 Figure 2. The Emergent Model
High Level of Presence of Personal Factors Tacit Knowledge Opportunity Deficit Strategic Involvement

Conceptual Skills

Strategic Orientation of HR Manager

Business Awareness

Operational Involvement

Competency Deficit

Low Low

Level of Presence of Organizational Factors Leaders recognition of HR Conducive Organizational Environment

High

Source: Dharmasiri (2007)

The intent here is not to discuss the emergent model in detail but to show the complexity and comprehensiveness of it compared to the conceptindicator model. It also demonstrates the richness of patterns that can be captured through a grounded research approach. Study on functional and structural elements of organizational commitment by Perera (2002) is another such example.
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Performance Orientation

8.

SUMMARY AND CONCLUSIONS

Grounded theory has, since its inception, been accepted as an important research methodology in the investigation of complex social interactions in the social science fields. Given the obvious similarities in human interaction that occur in these social areas and in organizations, grounded theory should conceivably be a potentially useful methodology for the exploration and examination of organizationally contexted human interaction. It is of greatest value when the researcher has little knowledge of the subject field of qualitative inquiry that is likely to be the case in relation to the investigation of many organizationally contexted phenomena. Grounded theorys greatest strengths are two-fold. First it permits the investigation of higher level and lower level factors of causation which is critical when investigating and seeking to explain variability in complex human interactions. Second, as an extension of inductive reasoning, grounded theory is a unique form of theory construction. As such, grounded theory rises above other qualitative research approaches as a distinct way of exploring and interpreting reality. Accordingly, it can be safely concluded that the grounded theory offers aunique approach in unearthing the rich patterns of behaviour that would otherwise have been hidden.

REFERENCES Annells, M, (1996), Grounded Theory Method: Philosophical Perspectives, Paradigm of Inquiry and Postmodernism, Qualitative Health Research, 6: 379. Creswell, C. W. (1994), Research Design: Qualitative & Quantitative Approaches, London: Sage Publications, pp. 173 190. Dharmasiri, A. S. (2007), Strategic Orientation of HR Managers in South Asia, Doctoral dissertation, Colombo: Postgraduate Institute of Management. Glaser, B. & Strauss, A. (1967), The discovery of grounded theory: Strategies for qualitative research, New York: Aldine. Glaser, B. (1978), Theoretical sensitivity. Mill Valley: Sociology Press. Kools, S. & McCarthy, M. (1996), Dimensional Analysis: Broadening the Conception of Grounded Theory, Qualitative Health Research, 6: 312.
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Locke, K. (1996), Rewriting the Discovery of Grounded Theory after 25 Years, Journal of ManagementInquiry, 5: 239. Mill, J. S. (1970), A System of Logic, London: Longman. Miller, S. I. & Fredericks, M. (1991), Post Positivist Assumptions and Educational Research: Another View, Educational Researcher, 20 (4): 2-8. Nanayakkara, G. (1983), The Scientific Study of Management, Vidyodaya Journal of Management, 11 (1&2): 13 - 26. Perera, C. T. (2002), Employee Commitment: A Study of Selected High Performing Companies of Sri Lanka, Sri Lanka Journal of Management, 7(3 & 4): 188-208. Robrecht, L. C. (1995), Grounded Theory: Evolving Methods, Qualitative Health Research, 5: 169. Sarantakos, S. (1993), Social Research, London: Macmillan Press, pp. 268-274. Schatzman, L (1991), Dimensional Analysis: Notes on an Alternative Approach to the Rounding of Theory in Qualitative Research. In D.R.Maines (Ed.), Social organization and social process: Essays in honour of Anselm Strauss,New York: Aldine, pp. 303-314. Strauss, A.& Corbin, J. (1990), Basics of Qualitative Research: Grounded Theory Procedures and Techniques, Newbury Park: Sage. Wells, K. (1995), The Strategy of Grounded Theory: Possibilities and Problems, Social Work Research, 19 (1): 33.

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HR TECHNOLOGY AND HR TECHNOLOGY FOR COMPETITIVE ADVANTAGE

Aruna Dayanatha Senior Manager HR, Ceylinco Insurance PLC (Life) Doctoral Candidate of PIM-University of Sri Jayewardenepura Aspiring HR-Technologist/Chartered IT Professional arunadayanatha@gmail.com

ABSTRACT IT has emerged as a new competitive dynamic. IT helps any business function to earn leverage. IT supported processes will be benefited by reduced cost, reduced cycle time and improving output quality. However, HR sector has dramatically failed to obtain the best benefit of IT, in todays context. Major allegation is that HR has only used IT to Automate HR processes and to informate up to a certain level. Yet there are higher levels of benefits that HR can obtain from IT. Literature suggests that there are higher levels such as Transformate and Endowmate as well. Author of this article explores the nature of intercept of HR and Technology (ICT), and stresses the requirement of new space for HR Sector, that will provide solutions in HR Technology domain. Key words: HR, IT, HR technology, HRIS, HR-IT, competitive advantage, automate, informatie, transformate, endowmate.

1.

THE ISSUE

IT has become an essential tool for almost all the business functions within a modern firm. All the functions utilize IT at some level, even though these functions may not know the maximum potential of what IT can do to the best operation of the function. HR being a function traditionally playing an administrative role, and today transiting to a level of a business partner as well, uses the IT to enhance the activities within the HR domain. Issue under consideration is, is the HR sector fully aware of the potential of the IT capabilities towards making HR more efficient? This article will explore the present level of utilization of IT in the HR function, within firms.
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Borderic and Boudereau in their report Human Resource Management, Information Technology, and the Competitive Edge argues that No one yet proved the effects of information technology on a firms competitiveness (Broaderick R.F, 1991). Same authors are arguing that Information Technology has enormous potential to make HR more competitive. Further they state that Unfortunately, most organizational investments in HR information technology support only a narrow range of administrative decisions, such as those associated with payroll and record keeping. In many cases the competitive potential of even these narrowly focused investments have not been fully exploited (Broaderick R.F, 1991). These statements pave the way to discussion of what present HR Technology is focusing at. Allegations of the cited authors are that, even though HR only utilizes IT for narrow administrative functionality, whereas the HR function as whole needed to shift beyond the administrative role, HR sector has not exploited the maximum potential of IT, even when it is being used for administrative activities. This scenario would be more relevant in the case of Sri Lanka using technology in the HR sector. Sri Lankan HR sector may not be fully utilizing the power of Information Technology or IT, in getting the support for HR functional processes. Towards the 21st century, the face of Information Technology took a drastic turn, where IT was renamed as ICT, i.e. Information Communication Technology, by inserting the aspect of Communication in to the scope. Further these changes were made enriched by promoting the Web technology to Web 2.0 as a technological advancement. However, fact remains as Borderic and Boudereau points out, HR has not made the best use of IT, i.e. Information Technology. It was argued that there is a greater potential in ICT, i.e. Information and Communication Technology than IT. And with the reshaped ICT, there is greater area to research and understand and intercept HR and ICT, which we label as HR Technology.

2.

ROLE OF IT IN ORGANIZATIONS

Information Technology or IT, Information and Communication Technology or ICT in todays context is simply referred as Technology. This technology drives the organization in the new millennium. Its treated as a source of competitive advantage as well. The HBR article IT that makes a Competitive Difference by Andrew McAfee
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and Erick Brynjolfsson, explore this phenomenon in all publicly treated US companies from 1960 to 2005. Towards the latter part of 20th century, development of ICT was accelerated. This has resulted in a new competitive dynamic for companies (McAfee A, 2008). This was prominently illustrated by the gap between the leaders and laggards of industries (McAfee A, 2008). It was evident that organizations which has shown rapid increase in performance were the companies which focused on the quality and quantity of IT, and those organization whose operating system are revamped by employing IT and internet technology (McAfee A, 2008). Thus a clear correlation was established between earning a higher level of performance over the competition and investment in IT or Technology (McAfee A, 2008). During the same period, many products were getting the leverage from IT (McAfee A, 2008). Organizational processes as well are becoming more productive and efficient with technology (McAfee A, 2008). Many, if not all of these changes are due to employment of internet and enterprise IT systems (McAfee A, 2008). Important characteristic of IT supported processes was, it could be easily replicated to support the business (McAfee A, 2008). Replication is implementing the same enhanced processes across different geographical locations where the business is operating. Last decade of 20th century was identified as the era where the enterprise systems, such as Enterprise Resource Management, Customer Relationship Management, and Enterprise Content Management were the practical tools of adopting IT in to businesses (McAfee A, 2008). During the past decade usage of IT in industry and commerce has increased rapidly (Elisabeth Wilson-Evered, 2009). Legare (2002) et al identifies the benefits obtained by the industry after using ICT as, reduced cost, reduced cycle time, and improving output quality (Elisabeth Wilson-Evered, 2009). Considering the importance of reduced cost, cycle time, and quality, in the business context, IT can be placed as same as strategic drivers of the businesses. Thus we can take that, ICT has given the industry leverage. Out of many definitions, the author opts to accept the following leverage: as a power is stated, as power to influence people and get the results you want (Cambridge Dictionaries Online).

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Companies, who believe in the power of technology, have utilized the technology to improve the processes within the organizations (McAfee A, 2008). Those organizations where they dont understand the power of technology may not use IT to improve the business processes (McAfee A, 2008). It was established that Firm with the best processes will win in most or all markets (McAfee A, 2008). In todays business environment, IT supported processes has the potential to earn the competitive advantage. Andrew McAfee and Erick Brynjolfsson established that most successful IT exploiters are the once that will pull out from the pack, losers will fall (McAfee A, 2008). How organizations have stayed ahead of the pack was explained by the authors of IT that makes a Competitive Difference- the article explains how companies competing on the digital processes, in other words how companies earn a competitive advantage by technology enabled processes. First deploy a consistent technology platform. Then separate yourself from the pack by coming up with better way of working. Finally, use the platform to propagate these business innovations widely and reliably. In this regard, deploying IT servers to distinct roles as a catalyst for innovative ideas and as an engine for delivering them. Each of the three steps in the mantra presents different and critical management challenges, not least of which have to do with questions of centralization and autonomy (McAfee A, 2008) This has given the management a new challenge. Organizations cannot support any process with technology. Business managers should select the best process that should be consistent, within the operating model of the organization. And use the technology to replicate the process with high fidelity (McAfee A, 2008). IT has brought about an opportunity for innovation in processes as well. Technology should not be simply adapted to the processes as they were before adopting technology. Collective Intelligence and Web 2.0, advancements of technology provide the framework with making process innovations (McAfee A, 2008). Web 2.0 applications, has brought about a big shift in the way the processes are facilitated using Technology. (McAfee A, 2008). The capabilities of Web 2.0 have the capabilities and features that would facilitate the business innovation (McAfee A, 2008).
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More importantly it was pointed out that Web 2.0 has the capability of causing the process changes to emerge from the lower level of the organization (McAfee A, 2008). Web 2.0 and the ERP Systems have open up the avenues that all part of the organization can come in to the innovation arena, without waiting till the innovation came from the headquarters (McAfee A, 2008). Technology application in the businesses processes has brought about a convenient standardization opportunity to business. Standardized business processes can be easily replicated using technology (McAfee A, 2008). Authors of the article IT that makes a Competitive Difference points out that IT systems do facilitate the implementation and monitoring of processes, once the processes are facilitated with technology (McAfee A, 2008). Thus facilitating the processes with technology will create an opportunity for inventing better methods (McAfee A, 2008). They further point out that HR policies as well should evolve to cater for such scenarios (McAfee A, 2008). How HR processes were enhanced with the help of technology is explained; An analysis of 400 U.S. companies that EriKBrynjolfsson published with Wharton professor LorinHitt in 2005, found that organizations successfully using IT were significantly more aggressive in vetting new hires: They considered more applicants. They scrutinized each one more intensively. They involved senior management (not just HR) early and often in the interview process. After identifying top talent, these firms invested substantially more time and money on both internal and external training and education Result of employing IT in organizations was sharp differences, rather than reducing the differences (McAfee A, 2008). Organizations always were having varied ability to select, adopt, and exploit innovations; technology has accelerated and amplified these differences (McAfee A, 2008). It was identified that the best value comes from process innovations that can now be delivered on those platforms (McAfee A, 2008). Successful process innovations with the help of technology were identified to have important characteristics as follows: They cover a wide span They produce results immediately
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 They are precise They are consistent They make monitoring easy They build in enforceability (McAfee A, 2008) The argument that is established with the discussion is, its not the IT or ICT that makes a competitive advantage in a company. Its the IT enabled processes within an organization that would contribute towards a competitive edge.

3.

HR AND COMPETITIVE ADVANTAGE

Increasingly all the business functions are employing the power of ICT, to obtain a strategic advantage or to increase the effectiveness or the efficiency. The Human Resources sector has employed a low level of power of ICT to enhance its effectiveness, efficiency, or to acquire a strategic advantage or in other terms to earn leverage from ICT. HRIS systems are designed to improve performance (Elisabeth Wilson-Evered, 2009). HRIS has been used as a means for storage and retrieval of HR Data (Newell, 2007). HRIS can be designed in different ways, either to use as an electronic filing system, automation of HR operational processes or it may be used to enable a strategic approach. It was pointed out that organization use new technologies, basically ICT, and information systems to harness the knowledge, in other words, to manage the knowledge, and link the organizational units or entities which are disparate (Lee, 1993). Yet, organizations are turning to the human competencies and capacities to bring life to the organizations which are transformed by the technology (Lee, 1993). Basically they are looking for avenues to earn a competitive advantage through Human Resource. It was pointed out that it would take considerable effort to identify the critical success factors of using Human Resource as a competitive advantage (Lee, 1993). Zuboff (1988) has pointed out two powers of ICT, automation capacity, and transformational capacity (Newell, 2007). Automation is referred to as saving mental or physical labor in the management data, mainly focusing on efficiency (Newell, 2007). Ball (2001) points out that many businesses have not moved beyond the strategy of automation (Newell, 2007). Thus gives a little or no integration or strategic capacity
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(Newell, 2007). Business organizations on an average have invested in ICT for HR to improve the efficiency of personnel management functions and payroll management yet has not taken initiatives to obtain an enhanced effectiveness for the HR function, required by the 21st century. Zuboff (1988) points out that another level beyond automation, is infomate where IT tools are used to generate new sort of information, where information is yielded as a byproduct, thus generating new streams of information (Newell, 2007). Level beyond automation potentially can make both managers and employees be more empowered having greater control over their work and work lives (Newell, 2007). Human resource is the resource that links other resources together to drive the business. Its the Human Resource that identifies business opportunities, develop product or services, formulate strategies, make and deliver products and services to the market (Lee, 1993). When Human Resource accomplish above activities, that organization will have a higher probability of succeeding in the competitive market, than in the case of an organization where such has not been happening (Lee, 1993). Success of Human Resource performing the organizational tasks mentioned above depends on the policies and programs used to attract, retain, develop, and motivate the numbers and types of employees in an organization (Lee, 1993). These are the usual business of Human Resource (Lee, 1993). Strategic internal fit for Human Resources strategy is identified as the coherency or synergy among the various Human Resources activities that make up the strategy, external fit refers to the degree of consistency between Human Resource Strategy on one hand and the business context on the other (Lee, 1993). Internal fit and external fit is explained as follows; Human Resources strategies that demonstrate internal fit are more effective than those that do not, in meeting Human Resources goals, Human Resource Strategies that demonstrate internal and external fit are more effective than those that do not, in contributing to organizational effectiveness (Lee, 1993) It was pointed out that HR system with complementary HRM practices tends to produce productivity and quality at a significantly higher level than any other HR system considered operating alone (Lee, 1993).
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There were no HR related areas that can be identified as having obtained leverage from technology, similar to inventory management and Just-in-Time by linking supplier systems through technology (Lee, 1993) or decentralization achieved by the service industry with the support of Technology (Lee, 1993) Such are identified as transformations of processes through technology (Lee, 1993). Intelligent management of Human Resources which is identified as leveraging intellect (Lee, 1993) can be a target for the HR Technology. Work design was identified as a central strategy for HR (Lee, 1993). Main focus was the employee contribution to the job, while the supervision, rewards training, and employment stability are identified as important components of this strategy (Lee, 1993). Characteristics of getting high level of employee involvement into work design were elaborated as follows: employees rather than managers design the work that is, the approach is more bottom-up in orientation using principles of job enrichment and, quite commonly, employing semi-autonomous or even autonomous (i.e., self-managing) work teams. Within broad guidelines, these terms decide on work goals, priorities, job assignments, quality controls, and, in advanced cases, such personal matters as hiring, training, and discipline, additionally, cross-functional, cross-level teams or committees (sometimes including labor union leaders as, for example, at Saturn) are employed to provide input in to or even to decide on broader organizational issues such as customer and supplier relations, overall productivity and quality goals, comprehensive work pressure (e.g. reengineering), human resource policies, and purchases of capital equipment. (Lee, 1993).

4.

COMBINING HR AND IT FOR COMPETITIVE ADVANTAGE

It was pointed out that even in a challenging economy firms continue to invest in IT (Webster Buchman Research, 2010). Survey on 100 HR directors in UK conducted in 2010, established that 70% of the companies had planned to spend either same amount or more in HRIT (Webster Buchman Research, 2010). In the paper titled, Human Resource as a Source of Competitive Advantage by Lee Dyer published by the Center for Advanced Human Resources Studies of Cornell
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University stresses the fact that business contexts are in a continuous flux. Making the new formulation of Human Resource Strategies and making them relevant and tested to prevailing and emergent contexts that are vital for the business success as well a challenging endeavor (Lee, 1993). In the changing business contexts, running fast in order to get to a different place is a competitive race (Broaderick R.F, 1991). Further it was alleged that during the best time of businesses, they have only stayed at the same place (Broaderick R.F, 1991). Managers search for combination of strategy, motivation, technology, and work methods and design that earns the competitive advantage to a company (Broaderick R.F, 1991). This competitive advantage or the competitive edge that they earn should assure that the business performance of the firm will sustain the business performance at an above average level (Broaderick R.F, 1991). Business managers have searched in the areas of information technology and its management applications as a source for competitive advantage (Broaderick R.F, 1991). It was pointed out that many managers were especially interested in applications designed for better management of Human Resources (Broaderick R.F, 1991). They expect the investments in such applications to pay off by contributing towards the firms competitiveness (Broaderick R.F, 1991) (Johnson R.D, 2004). It was identifies that simple automation of HR processes will no longer assure the competitive advantage for firms (Johnson R.D, 2004). Thus a new challenge for Business Managers in todays context is identified as identifying HR technology that would earn a competitive advantage, in the journey of earning competitive advantage through people. Decade of 80s was identified as the era the business world started to use the Information Technology (Broaderick R.F, 1991). Starting from this decade, computer technology had led to creation of new products and services (Broaderick R.F, 1991). While the capability of Information Technology can be used to develop competitive products and services, it was identified that HR has only used the Information Technology to improve HR decisions with better information (Broaderick R.F, 1991) (Webster Buchman Research, 2010). Through research conducted in ten fortune 500 companies it was found that majority of these companies have invested on computer applications to manage employee records, payroll, and compensation and benefit administration (Broaderick R.F, 1991) (Webster Buchman Research, 2010). Outcome
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of such investments falls in to an area of efficient management of information (Broaderick R.F, 1991) using Information Technology, in other words to the paradigm of informate through technology. A different opinion was expressed referring to eHRM practices where adaptation of eHRM practices were identified as in the rise (hmeier, 2009). Objectives of eHRM were identified as follows reducing costs, speeding up processes, improving quality, and even gaining a more strategic role for HR within the organization (hmeier, 2009). It was pointed out that consequences of eHRM can become desired as well undesired by the organization (hmeier, 2009). Further advancement of using the power of technology was cited in the largest 500 companies (by revenue) in America. 79% of these companies were using the technology for recruitment to some extent (Trkman, 2003). It was pointed out that the number of companies that use internet for recruitment are on the rise (Trkman, 2003). Identified benefits of internet based recruitment were as follows: Lower cost of recruitment Quicker process of recruitment Possibility to attract better candidates (Trkman, 2003) In 2010, as survey was conducted by the Webster Buchnan Research and published article titled From absence management to HRIT investment: assessing HR priorities with association of computer in personnel, they have listed the investment priorities of HR as follows: Learning and Development Recruitment Performance Management Reporting and Analysis Absence Management HR Self service Maintenance and enhancement of their HR Management System (Webster Buchman Research, 2010)
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Yet the evidence of using technology in the HR was not available. With the advancement of the Internet, it was evident that the power of Internet was used to introduce eHRM in organizations (hmeier, 2009). There were arguments to propose that employment of Information Technology was used to eliminate layers of paper and pencil entries in HR processes, and manual calculations, and helped to cut the administration costs of HR processes (Broaderick R.F, 1991). The best payoff was identified as the increased accuracy of execution of processes to an estimated level of ninety nine percent (Broaderick R.F, 1991). This type of applications could be identified as using automation of HR processes (Broaderick R.F, 1991) or to the automate paradigm as we have discussed in this article. Argument was presented to establish a greater automation in HR processes through Information Technology as follows: To achieve these strategic objectives and realize competitive advantage for the firm, HR must first apply to its own house that is, within the HR function itself. Restructuring in most firms has left HR with a smaller workforce, yet equal or greater responsibilities and new demands. Time has become a critical a resource as talent and money. HR must review its work to define strategic priorities. What work must continue to be done? of that work, which can be done better by searching out efficiencies and economies of scale (cost leadership); which can be done better by delegating and collaborating with line managers and employees or other functional staffs (quality/customer satisfaction); and which would most benefit from creative time, talent, and resource (Innovation)? In short, how can HR best work harder, smarter, or with more vision? (Broaderick R.F, 1991) Borderic and Boudereau discusses a higher level of application of Information Technology, as providing early warning to the management (Broaderick R.F, 1991). Example cited was For example, one application might tally total monthly pay increase allocated, compare them to targeted annual pay increase totals, and report the units where actual increases are running well ahead of target (Broaderick R.F, 1991). This will alert the HR and line managers to act before variances are developed beyond the level of control (Broaderick R.F, 1991). More advanced level of usage of Information
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Technology may create application where the user department will be capable of creating their own database to store local data and even to customize the reports without involvement of IT departments (Broaderick R.F, 1991). Such will create empowerment within the HR managers and Line managers. HR working harder with fewer people in the HR department (Broaderick R.F, 1991) is increasing the effectiveness and efficiency of HR department with the help of Information Technology. Reviewing the Expert System Applications, it was identified, that Expert System Applications contribute towards improved decisions for the businesses (Broaderick R.F, 1991). Nature of applications are that decisions are derived through the expert knowledge and experience built in to the systems (Broaderick R.F, 1991). These work based on rules, which are complex in nature and they are derived inside the systems based on careful analysis and expert decisions (Broaderick R.F, 1991). These applications provide the user with the expert knowledge without hiring an expert to the organization (Broaderick R.F, 1991). Such applications empower the people through Information Technology giving examples for the paradigm of empowering or endowmate, as the author proposes. While discussing the Information Technology in the context of Expert Systems, it was learned that expert systems use information from different systems, or may be information from different geographic regions (Broaderick R.F, 1991). Expert System Applications facilitate building scenarios that will not have one right answer to a case (Broaderick R.F, 1991). There are two types of Expert Systems to identify. Expert Systems with black box approach, where the expert solutions are provided without exposing how such was arrived at (Broaderick R.F, 1991) will facilitate automating the tasks and processes. On other hand the training systems use the learning capabilities built in to the system, in order to make decisions. These systems use a dynamic approach in arriving at the decisions, where the user has to provide the parameters of setting the context (Broaderick R.F, 1991), in which case the user is empowered by the usage of Expert System Application. A special characteristic in such case require the users as well to be analytic enough to diagnose their own situation, by following the guidelines provided by the expert system (Broaderick R.F, 1991). It was pointed out through the Expert System Applications that managements decision making will to be delegated to lower levels (Broaderick R.F, 1991). At the same time
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these systems allow the HR to track the delegated decision making and further assess the results generated by such decisions as well (Broaderick R.F, 1991). Such characteristics are treated as specific to Expert Systems which are training in nature (Broaderick R.F, 1991). Using Expert Systems, HR could delegate many traditional HR responsibilities to teams while increasing the likelihood that team decisions are informed ones (Broaderick R.F, 1991). Benefits of such approaches assisted by Information Systems is that HR and the Employees and other manages will better understand how HR systems work, and thus will be in a better situation to suggest improvements and to allow people work smarter (Broaderick R.F, 1991). These can be treated as another level of empowering people through Information Technology. Following reasons were identified as reasons why HR could no longer be away from using technology. These reasons are from the point of view of businesses, not the HR profession. They are: Organizations expect to reduce the administrative burdens, by streamlining HR Processes Cost of HR administration and compliance is identified as an area where a saving should be made Organizations need to complete for global talent and firms should be more effective in competing Improve the access to services as well as to information for managers and employees In managing the workforce, decision makers would like to identify trends using real-time matrixes Transform the HR, to a level it can play a more strategic role (Johnson R.D, 2004) New face of HR using the Technology, require the HR Professional to have a fundamental change in approach, skills, and abilities rather than mastering traditional HR skills (Johnson R.D, 2004) With the rapid advancement of ICT in the last two decades, organizations were provided with whole new possibilities of how the work would be performed and how the organization would be structured (Trkman, 2003). Opinion was expressed that in the
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future people may not want to stick to one company, yet offer their services to companies, and coined a term Portfolio People (Trkman, 2003). People will offer their services to companies on project basis (Trkman, 2003). This will be a whole paradigm of structuring the organizations and how people will work and how the work is managed; these are subjects in the domain of HR professional, influenced by the technology. The concern was expressed to say that effectiveness of HRIS systems were not measured, the HRIS success was not correlated to the dollar amount invested, yet correlated to the total number of employees in the firm (DeSanctis, 1986). HR professional and extent that IT influence the HR professionals job was identified as a major determinant for the success of IT implementation within the HR function. (Gardner S.D, 2003). If IT makes the HR professionals job easy, IT implementation would be a success. If IT makes it difficult for the HR professional, IT implementation would not be successful, basically the buy in of the HR Professional in a vital thing to consider. Technology will change how things are done and will have an influence on different functions and individuals in the organizations (Gardner S.D, 2003). Ulrich has mentioned that IT will impact how HR is done within the organization (Gardner S.D, 2003). Information responsiveness is identified as a vital gain for the HR professional through using technology (Gardner S.D, 2003). HR professional should be capable of being relieved of routine administrative tasks and focus on providing meaningful information, which is identified as information responsiveness (Gardner S.D, 2003). Increased information responsiveness was recognized as an empowerment through technology (Gardner S.D, 2003), which the author argues as a level in IT usage maturity. Such empowerment or endowment of HR professional will enable them to provide increased value towards the business (Gardner S.D, 2003). Ulrich has identified IT as one of the tools that HR professional can utilize in order to provide more value to the organization (Gardner S.D, 2003). Employment of technology provides the HR professional, and for that matter, any professional with connecting with other professionals and share knowledge and information (Gardner S.D, 2003). Using IT in HR function was identified as giving HR professionals with opportunity to focus on more knowledge based activities and internal consultancy activities (Gardner S.D, 2003)(T.V. Bondarouk, 2009).
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5.

DEFINITIONS FOR THE COMBINATION OF HR AND IT (TECHNOLOGY)

Many authors have attempted to define the intersection of HR and Technology. Many definitions may have been developed based on the contextual studies. HR-Technology in practice at the time of definition will definitely influence the formation of the definition. It is worthwhile to explore definitions for the HR-Technology. An early definition for HRIS was presented as specialized information system within the traditional functional areas of the organization, designed to support the planning, administration, decision-making, and control activities of human resource management (DeSanctis, 1986). Another definition on HRIS was presented by Haines and Petit (1997) as follows system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information about an organizations human resources (T.V. Bondarouk, 2009). Bringing the eHRM concepts to definitions, it was defined by Lednick-Hall and Moritz (2003) as conducting HR transactions using the Internet or intranet (T.V. Bondarouk, 2009). A different definition for eHRM was cited from Voermans and Van Veldhoven (2007), as e-HRM could be narrowly defined as the administrative support of the HR function in organizations by using Internet technology (T.V. Bondarouk, 2009). Bringing the advancement of ICT, a definition was cited from Strohmeier (2007), as e-HRM as the [planning, implementation and] application of information technology for both networking and supporting at least two individuals or collective actors in their shared performing of HR activities (T.V. Bondarouk, 2009). Bringing the eHRM to a level of virtual level, Lepak and Snell (1998) was cited as defining eHRM as virtual HR to describe a network-based structure built on partnerships and mediated by information technologies to help the organization acquire, develop, and deploy intellectual capital (T.V. Bondarouk, 2009). Further definition of eHRM was cited from the works of Strohmeier (2007) e-HRM can be understood as the (planning, implementation, and) application of information systems (IS) for both networking and supporting actors in their shared performing of HR activities (hmeier, 2009).
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After citing many definitions, Bondarouk (2009) defines eHRMin terms of concept, concern for implementation, targets and eHRMconsequances, and further identifies the focus of future researches in the same area as follows: Content of e-HRM: it concerns any type of HR practices that can be supported with IT, either administrative or transformational; it also concerns any type of IT that can offer support for HRM, either[,] Internet, intranet, or complicated ERP systems. Researchers are expected to clarify the match between a type of IT and the type of HR practices. Implementation of e-HRM: it involves the process of adoption and appropriation of e-HRM by organizational members. Researchers should anticipate the ways they judge the success of e-HRM implementation. Are we talking about e-HRM diffusion, acceptance, appropriation, adoption, or user-satisfaction? Targeted employees and managers: whereas until the mid-1980s HRIS was primarily directed towards the HR department, by the turn of the century, line management and employees were actively involved in using e-HRM applications. Nowadays, at any given second, thousands of people are zipping around the Internet in search of employment opportunities, forcing organizations to direct e-HRM effort towards potential candidates (HRFocus 2003). It means that modern e-HRM broadens its target and goes beyond the organizations borders to address the needs of all stakeholders. At this point, researchers are supposed to focus on a specific stakeholder group as the e-HRM target in their studies. . e-HRM consequences: along with the discussion on value creation and value capture (Lepak, Smith and Taylor 2007), we stress a multilevel perspective viewing e- HRM value creation as subjectively realized by a target user who is the focus of value creation ( ibid. , p. 182). It means that either an individual employee or an HR professional, the whole HR department, organization, or a net of several organizations is willing to exchange money for the value received from e-HRM. Lepak et al. (2007) note further that the monetary amount exchanged must exceed the producers costs (time, training, effort, money, meetings dedicated to eHRM projects); and it is approximated as a delta between new value (like freedom from HR administration or less paper work) and the users alternative. (T.V. Bondarouk, 2009).
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6.

BUILDING THE CONTINUUM FOR IT MATURITY

It was identified that ICT can be used expecting several levels of results within business organization. These levels are derived using identified capacities and capabilities of ICT; they are Informational Capacity, Automating Capacity, Transformational Capacity, and Capacity to Empower through ICT. Researcher coins the terms to be used in a convenient manner as Automate, Informate, Transformate, and Endowmate. Authors thought process for deriving these terms are as follows: 6.1. Informate

Informational capacity of ICT is where IT tools are used to generate new sort of information, where information is yielded as a byproduct, thus generating new streams of information (Newell, 2007). 6.2. Automate

Automate is referred to as saving mental or physical labor in the management data, mainly focusing on efficiency (Newell, 2007). 6.3. Transformate

Transformational capacity of ICT is that ICT is capable of moving beyond simple information management perspective to a deeper structural view, recognizing that ICTs may be utilized to alter the structure (Pant Laxmi Prasad, 2011). 6.4. Endowmate

Researcher coined the term Endowmate from same being a synonym to Empower. Empowerment capacity of ICT would potentially make both managers and employees be more empowered having greater control over their work and work lives (Newell, 2007). 6.5. Continuum

For the purpose of the research, researcher wishes to adopt the four levels of ICT Maturity to be sequenced as 1. Informate, 2. Automate, 3. Transformate, and 4. Endowmate. This sequencing was arrived at based on the complexities of technological
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usage to achieve each level of results through ICT. Informational role of ICT was the initial role the IT was intended, based on the Input, Process, Output cycle, processing data to obtain information was treated as the subject of Data Processing at the early age of IT. Thus, the researcher believes that Informate should be placed at the bottom most level. Automation or Automate as defined early in this chapter is to save manual labor, basically eliminate the processing of paper and pencil work related process steps in business processes, can be fairly placed at a higher level of complexity than informational level. Transformation or Transformate definition demands a change in the structure as well, this require more organizational effort as well as initiative. Thus, the researcher places the Transformational task of ICT above the Informational and Automation levels. Empowerment, Endowmate suggests changes to the work life and work itself. This thus requires greater change than all the levels identified earlier, where change in the manager as well as the subordinate is required, and further the researcher trusts grater level of paradigm shift is required within the organization. This requires a greater level of change in the mind set of both the parties as well. Therefore, the researcher believes that Empowerment related ICT development efforts are at the highest level. At the same time, latest technological developments related to ICT, i.e. Web 2.0 are focusing on Empowerment related ICT usage, more participation, and more freedom for both the employees and management.

7.

LATEST DEVELOPMENTS IN ICT

There are many developments in the ICT world; amongst all development one major improvement that shaped the entire world was web2.0. Web 2.0 is referred as wisdom Web, people-centric Web, participative Web, and read/write Web (San, 2007). Specialty in web 2.0 is the interactive nature of the technologies available (San, 2007). It promotes social interaction; collective intelligence presents new opportunities for leveraging the web and engaging IT users more effectively (San, 2007). Power of Web 2.0 can be seen with the introduction of Social media Web facilities, namely Facebook, Youtube, Linked in, MySpace, Flikeretc (San, 2007). Global Survey conducted by McKinsey has identified that three fourths of the senior executives participated in the survey accepted that Web 2.0 technologies are strategic and that they plan to increase their investments in Web 2.0. (Bughin Jacques, 2011). In a survey conducted by Forrester
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Research, 89% of CIOs expressed the opinion that Efficiency Gains and Competitive Pressures Drive Enterprise Web 2.0 Adaptation (San, 2007). Web 2.0 has a paradigm of technology and the paradigm of usage as well (San, 2007). Web 2.0 brings about the following features to the technological world; 1. Facilitates flexible Web Design, creative reuse and updates 2. Provides rich, responsive user interface 3. Facilitates collaborative content creation and modification 4. Enables the creation of new applications by reusing and combining different applications on the Web or combining data and information from different sources 5. Establishes social networks of people with common interests and 6. Support Collaboration and helps gather collaborative intelligence (San, 2007) The McKinseys research on How Social Technologies are Extending the Organization -executives has stated that they are using these technologies to improve their agility and to manage organizational complexity (Bughin Jacques, 2011). Many of these executives believe that if organizations diminish the barriers to use social technologies they could form the core of entirely new business processes that would create many radically improved processes (Bughin Jacques, 2011). Practitioners viewpoint of HR Technology The article published by SHRM Foundation, and authored by Richard D Johnson and Hal G. Gueutal, titled Transforming HR through technology, the use of e-HR and HRIS in organizations puts the practitioners perspective on the subject matter. This study was conducted by two scholars on assignment by Society for Human Resource Management. Change of the face of HR, with the influence of ICT was explained as follows: Today the face of HR is often a portal, rather than a person. Almost all firms now provide universal access to HR services through technology and web-based applications, dramatically changing the practices of human resource management (Johnson R.D, 2004).

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The term e-HR was coined, when the power of internet technology was used for HR Processes (Johnson R.D, 2004). HR Technology was used alternatively, when facilitating the HR Process through web, thus coining the terms e-Recruiting, eSelection, e-Learning, e-Performance Management, e-Compensation, and e-Benefits (Johnson R.D, 2004).

8.

RECOMMENDATIONS

It is the right time for the HR sector to focus on the HR-Technology, employ for greater value adding activities than record keeping in Personnel and Administration. Past researches show that getting the IT in to HR is not in the top priorities of HR, to begin with HR strategists should place getting the IT in to HR in priority list. There are evidences to say even in the economic down turn, companies are investing in IT, and this is an encouraging scenario for the HR sector to focus on IT. For the success of any project, the buy in from the change target is vital, thus in order to obtain the buy in from the HR professional, first step would be to facilitate the HR professional. Technology should be used to make the HR professionals life easy. So there would be more buy in from the HR professional. Starting point will be to relieve the HR professional from routine administrative tasks with help of HR Technology. Once the HR professionals time was relieved, then business leaders can look at the next level of technology usage in the HR arena, to earn a competitive advantage through HR with the support of IT. Focus in initial level should be a whole HR process. Agenda in using HR Technology should be carefully prepared, it would not be the Best Practice paradigm, each organization will have to assess its own process contribution and identify the processes that would bring in best results by employing IT. Standing on the paradigm, Firms with best processes will win in most or all markets, all HR-Technology investment decisions should be aimed at making the processes better. HR sector should recognize the power of Web 2.0. Web 2.0 has the potential of getting the participation of all the employees at all levels, and even in all geographical regions. HR Should look at the Social Media, positively and think out of the box for how to use the same internally as well as externally for the betterment of the organization.
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HR Should open up to the New way of working, even though its out of the scope for this article, latest developments and phenomena of IT like, Cloud Computing, Virtual Classrooms, Software as a Service and Free and Open Source Software should be assessed in different facets to identify how best the organizations could be benefited, and how the organization could be altered to adopt such technologies. HR Policies should evolve to cater for earning an advantage through IT, HR policies should remove the barriers employing of technology within the firm. These will include the social media usage powered by Web 2.0, and shifting in to entirely new business processes that may radically change the processes.

9.

CONCLUSION

Up to now, technology has been an alienated subject for many people. This may be the reason why HR mostly depends on what IT gives HR. Depend on most of the Automate and Informate paradigms. Time is right for the HR sector to shift towards Transformate and Endowmate - the HR professional and HR processes with the Technology. To focus more on the matter, without keeping the HR and IT separate, we need a new breed of professionals, who will most likely be labeled as HR-Technologist, to support the business firms and HR sector.

REFERENCES Broaderick R.F, B. J. (1991). Human Resource Management, Informtion Technology, and Competitive Edge. Cornell University. Bughin Jacques, B. A. (2011, November). How Social Technologies are extending the organization. Retrieved November 26, 2011, from www.mckinseyquarterly.com: https://www.mckinseyquarterly.com/ How_social_technologies_are_extending_the_organization_2888 Cambridge Dictionaries Online. (n.d.). Leverage_2. Retrieved 12 14, 2010, from dictionary.cambridge.org: http://dictionary.cambridge.org/dictionary/british/leverage_2 DeSanctis, G. (1986, March). Human Resource Information Systems: A current assessment. MIS Quarterly.
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Elisabeth Wilson-Evered, C. E. (2009). Measuring Attitude to HRIS implementation: A Field study to inform implementation methodology. Asia Pacific Journal of Human Resource, 374-384. Gardner S.D, L. D. (2003). Virtual HR: the impact of Information Technology on the human resource professional. Journal of vocational behaviour, 159-179. Hmeier, S. S. (2009, March). Concepts of e-HRM consequ ences: a categor isation, review. The International Journal of Human Resource Management, 20(3), pp. 528543. Johnson R.D, G. H. (2004). Transforming HR through Technology, the use of e-HR and HRIS in organizations. SHRM Foundation. Lee, D. (1993). Human Resources as a Source of Competitive Advantage. Cornell University ILR School. McAfee A, B. E. (2008, July-August). IT That makes a Competitive Difference. Harward Business Review, 99-107. Newell, C. T. (2007). A Knowledge-Based view of Agenda-Formation in the Development of Human Resource Information Systems. Management Learning, pp. 95-119. Pant Laxmi Prasad, H. R. (2011). ICT-Enabled Development of Capacity for Climate Change Adaptation. Manchester: University of Manchester. San, M. (2007, July-August). Retrieved November 26, 2011, from wiki.uml.edu: http:/ /91-592-722.wiki.uml.edu/file/view/understanding_web_20.pdf T.V. Bondarouk, H. R. (2009, March). Electronic Hum an Resource Management : challenges in the digital era. The International Journal of Human Resource Management,, 20(3), pp. 504-514. Trkman, P. B. (2003, June). Influence of Internet and Information Technology . Informing Science . Webster Buchman Research. (2010). From absance management to HRIT investment: assessing HR priorities. Computers in personal.

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DO ORGANISATIONS BENEFIT FROM EMPLOYEE EMPOWERMENT?

Chandana Jayawardena1 and Yugan Pathirage2 1 Senior Lecturer, University of Peradeniya, Sri Lanka. Postgraduate Institute of Agriculture, University of Peradeniya, Sri Lanka. chandanacj@yahoo.com

ABSTRACT The study was conducted, in an established apparel manufacturing plant in Sri Lanka, to examine the impact of employees empowerment on team performance. Specific objectives of the study were to identify the dimensions of team empowerment, to assess the impact of team empowerment on performance, and to analyse their interrelationship. A questionnaire (developed based on empirical models) was employed over a sample of hundred and twenty (120) employees selected from the organization. Respondents (employees) were selected through stratified random sampling, and majority of them (102) were sewing machine operators. Key informant discussions and focus group discussions were conducted for further insights. SPSS computer package was used for descriptive and inferential (correlation and regression tests etc.) statistical analysis. Empowerment measures included six dimensions/ variables. Their subscales were adopted based on empirical findings. Employees of the apparel manufacturing plant perceived a high level of empowerment and teams have recorded desirable levels of performance. Respondents perceived that team empowerment had increased their team performance. There was also a specific programme to empower sewing machine operators aimed at facilitating their lifestyles. The correlation analysis indicated a highly significant relationship between team empowerment and team performance. Sub variables of team empowerment had a significant (and a varying) impact on team performance. The study concluded that team empowerment results in better performance of teams, and organisations. Key words: Empowerment, team performance, employees, effectiveness
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1.

INTRODUCTION

The apparel industry has witnessed many challenges, changes and demands, such as globalization, free trade treaties, rising expectations of internal and external customers, and increased competition. Internal and external pressures and change forces have made it a very challenging and a competitive industry. Production and operations management has grown rapidly and its boundaries have been stretched in many directions. Over the last two decades production and manufacturing management had gathered several new production management concepts, such as manufacturing strategy, focused factory, just-in-time manufacturing, concurrent engineering, total quality management, supply chain management, flexible manufacturing systems, lean production, and mass customization etc. Harrimand Alkshali (2008) identified Human Factor was a major factor in optimizing manufacturing systems. Employee empowerment had gained increased attention in output optimization. 1. 1 Empowerment of Employees

Ettorre (1997) defined empowerment as, employees having autonomous decisionmaking capabilities and acting as partners in the business. He elaborated that sharing with junior employees comprise of four organizational ingredients; a.) Information about organizations performance, b) Knowledge that enables employees to contribute to organizational performance, c) Rewards based on the organizations performance, and d) Power to make decisions that influence organizational direction and performance. Bowen and Lawler (1992), and Cacioppe (1998) have suggested that empowerment exists when companies implement practices that distribute power, information, knowledge, and rewards throughout the organization. Cacioppe (1998) has emphasized these four elements stating If any of the four elements is zero, nothing happens to redistribute that ingredient, and empowerment will be zero. Athreya, and Chunkath (1996) indicated that empowered employees provide quicker on-line response to customer needs during service delivery. Employees will interact with customers with more warmth and increased trust in the organization and less conflicts with managers. Albert and Fetzer (2005) indicated that people who have information about current performance levels set challenging goals and when they achieve those goals they reset new goals at a higher level. An empowered organization would at least encourage the employees to suggest improvements.

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The process of supervisory support is best described through mentoring or coaching and it entails: determining the skill level of the employee, sharing information about the goal to be achieved and confirming the importance of the goal to the organization as a whole. Psoinos and Smithson (2002) suggest that appropriate supervisory support has to be provided depending upon the employee skill level, e.g. directing when the employee has a low skill level and coaching when the employee has some skills, but lacks experience or motivation etc. The Toyota manufacturing unit in Japan (Liker, 2003) has focused on value adding teams, in which the group leader is made responsible for product quality, monitoring yield, quality systems management, and environmental sustainment. Team Leader is responsible for teams results (factory goals), and for the results of team members. 1.2 Team Performance

Gemuneden, and Lechler (1997) have defined team performance as the extent to which a team is capable of meeting established quality, cost and time objectives. They have mentioned that, the perception of projects success depends, in part, on perspective of evaluator, and the operational concepts used to measure were: Effectiveness, Efficiency, Learning, Work Satisfaction, Team Conflict, Effort, Balance of Member Contribution, Mutual Support, Cohesion, Coordination, and Cooperation. Schwartz (1994) has identified that collaboration with team members gives the opportunity for learning social, project management, technical and creative skills. Such acquisition of new skills relates to team members desire for personal and professional growth and to increase team members potential for future work. Researchers suggest that effort of team members are measured in terms of norms. They may exist in every type of apparent behaviour in teams. Hoegl, and Gemuenden (2001) have identified the importance of balancing membership contribution to team performance, as follows: Every team member is able to contribute task-relevant knowledge and experience to the team. They defined mutual support as a central part of teamwork, and have viewed that it protects the team from over-work. Fetterman, Kaftarran, and Wandersman (1996) have suggested that team cohesion refers to the degree to which team members desire to remain in the team. The degree of common understanding of the inter-relatedness, and the current status of individual contributions also determine the quality of team work performed. In apparel industry many activities in task process are assigned to members performing parallel tasks.
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1.3

Problem statement

Importance and topicality of this study stems from several roots. Modern manufacturing firms rely more on team based structures and designs. However, empirical findings of team empowerment and its effect on team (and organizational) effectiveness in apparel manufacturing industry are scarce, especially in the Sri Lankan context. As per the 2009 Annual Report of the Central Bank of Sri Lanka, textiles and apparel manufacturing dominated the industry sector accounting for 46% of export earnings. It had employed over 200,000 people directly, and about 400,000 indirectly in nearly 750 factories. Study has focused on the importance of team empowerment as a means of enhancing team performance. 1.4 Objectives of the study

Overall objective of the study was to examine the different dimensions of team empowerment, and to assess their contribution to team performance. Specific objectives of the study were to identify the dimensions of team empowerment, to assess the impact of team empowerment on performance, and to analyze the relationship between team empowerment and team performance.

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Figure 1: Conceptual Framework of the Study

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Source: This was developed by integrating and modifying the models of Schwartz 1994, Richard Vosburgh 2007, Martin, H and Hans,G.G 2001, and Kirkman B.L 1999

2.

METHODOLOGY

Study was carried out in October and November, 2010 in an apparel manufacturing plant (hereinafter referred to as the Organisation) in the Central Province, Sri Lanka. It belonged to a highly reputed and leading exporter of apparels in Sri Lanka. Target group of the study was the operational level employees. Sewing Machine Operators (SO), Supervisors (SL), Group Leaders (GL), Production Managers (PM), and the Value Stream Manager (VSM) constituted the sample frame (Refer Fig.2). Sample was selected through stratified random sampling. It consisted of 102 sewing machine operators, 12 supervisors, 4 group leaders, and 2 production managers. Data were collected through a questionnaire and an interview schedule. Questionnaire was structured based on the major variables of the study. Questionnaires were handed over with a briefing to respondents, and were allowed to respond on anonymity to minimize biases. Key informant discussions and focus group discussions were conducted to enrich the findings. Secondary data were collected from organizational performance reports, publications, and research reports. Figure 2: Sampling framework

Source: Authors
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2.1

Research Hypothesis

The main hypothesis constructed for the study was follows: Ho-Team empowerment (six dimensions viz: Potency, Recognition, Motivation, Level of Responsibility, Power & Autonomy and Group Culture) has no significant impact on the overall Team Performance. 2.2 Variables and Analysis

Potency, Recognition, Motivation, Level of responsibility, Power and Autonomy, Group Culture were identified as the sub variables of Team Empowerment. Team performance was the dependant variable (Please refer Conceptual Framework in Figure 1). SPSS computer software was used for analysis of data. Analysis involved frequency distributions to describe demographic data of respondents, descriptive statistics of Mean and Standard Deviation to calculate central tendency and dispersion (variance) of responses to specific questions and correlation coefficient to ensure reliability of questionnaire. ANOVA analysis and linear regression analysis were used to test the six minor hypotheses on the impact of team empowerment dimensions on team performance.

3. 3.1

FINDINGS Background Findings

The formal education level of respondents was measured by their number of years in school. Majority of respondents (Sewing machine operators and Supervisors) had completed senior secondary education GCE (Advanced) Level. Over 96% of respondents had successfully passed at GCE (Ordinary) Level exam. The relatively high education level (at all levels) of respondents (employees) facilitated the transfer of knowledge and skills, and understanding of aspects related to work and work environment. Increased levels of educated employees had made the locus of control more internal, making empowerment a key issue in teams. About 72% of Supervisors earned over Rs 14,000 per month, whilst 50% of them earned over Rs 17,000 per month. About 60% of team members earned Rs 8,000- 10,000 per month, and 23% of them earned over Rs 13,000 month. Their salaries were higher than what was offered by similar organizations in the apparel industry.
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Table1 depicts the mean (M), and standard deviation (SD) of the two main variables viz; Team Empowerment and Team Performance of respondents. Mean value of Team empowerment was (4.64) and the SD was (0.81). This indicated that there was a relatively high level of team empowerment (The maximum possible was 6). Of the dimensions/ variables of team empowerment, group culture scored the highest mean (4.91), (SD = 0.67), so that respondents had strong belief in their team. Production flow was structured to the modular concept with 16 to 18team members. Each SO was designated to do a specific job role. Everybody had to work cohesively, respectively, qualitatively with personal accountability for teams success. Management promoted group culture through rewards based on team performance. Team performance was measured through a combination of sub scales. A mean value of 4.19 for overall team performance with a SD of 0.79 indicated a higher level of team performance. This was evident from the fact that employees were highly focused on achieving the teams target. Supervisors seemed to have stretched that extra mile to facilitate their teams performance. Table 1: Factors related to team performance Variables Potency Recognition Team Motivation Empowerment Level of responsibility Power and autonomy Group culture Sub Total Team Performance
Source: Authors
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Items 4 6 5 6 5 4 30 40

Alpha 0.83 0.77 0.86 0.83 0.87 0.79 0.82 0.86

Mean 3.78 4.25 4.67 3.98 4.68 4.91 4.64 4.19

Standard Deviation 0.68 0.76 0.81 0.79 0.87 0.67 0.81 0.79

All Subscales together

3.2

Relationship between team empowerment and team performance

Correlations and Regression analysis were employed to estimate the causal relationships between team empowerment and team performance. Pearsons Correlation Coefficient analysis was used to assess the relationships of variables between team empowerment, and team performance. Performance had a positive relationship with Empowerment. Table 2 depicts the Pearsons correlation with a correlation coefficient of 0.84 and p value of 0.06. It was highly significant (at =1%) indicating that better empowered teams perform better. And it also had a positive infection on teams performance. Regression Analysis was used to assess the variables influencing team performance. Table 2: Relationship between Team Empowerment and Team Performance Variables Team Performance Team Empowerment Pearson Correlation Sig. (1-tailed) Pearson Correlation Sig. (1-tailed) Number of respondents 0.84 (at = 1%) 0.06 114 Team Performance 1

Using six point scale: 6 = Strongly Agree to 1 = Strongly Disagree.

Source: Authors

Table 3: Regression Analysis: ANOVA/ T Coefficients Statistical Indicators Team Empowerment Value F Beta Coefficients T R2 Adjusted R2
Source: Authors
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Sig. 0.00

39.413 0.696 13.933 0.642 0.613

Table 3 depicts that coefficients of team empowerment were significant. A positive relationship between empowerment and performance was indicated. Beta value (0.696) of team empowerment signified a high contribution towards team performance. Values of R2 (64.2%), and adjusted R2 of 61.3 indicated that team empowerment had brought sufficient variation to team performance. This could be singularly focused on the six sub variables of team Empowerment viz: Potency, Recognition, Motivation, Level of Responsibility, Power and Autonomy, and Group Culture. It seemed to have a synergistic impact as well. Larger values of R indicated a stronger relationship. Fvalue showed that the overall model was statistically significant and team empowerment had predicted the variation in team performance. It was significant at = 01%. Results confirmed that team empowerment had resulted in better performance of teams.
Table 4: Regression Analysis- impact of Team Empowerment to Team performance

Team Empowerment Dimensions Potency Recognition Motivation Level of responsibility Power and autonomy Group culture R2 = 0.57
Source: Authors

B 0.19 0.71 0.57 0.68 0.36 0.83 F = 51.02

T 2.73 8.63 7.14 7.89 5.42 9.78

Sig. 0.05 0.00 0.00 0.00 0.00 0.00 Sig. = 0.00

Table 4 depicts that sub variables of empowerment had a significant effect on team performance (at p d 0.05). However, the effect has varied from one sub variable to another. The highest was explained by Group Culture (B = 0.83), then Recognition (B = 0.71), and the least was Potency (B =0.19). The performance culture within the organization seemed to have made a high impact on group culture. The recognition received by teams, and individuals within teams seemed to act as a trigger in team performance. Level of responsibility seemed to have stemmed from the recognition
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factor. And the level of responsibility seemingly contributed to the level of motivation of SOs. Coefficient of determination (R2) for team empowerment was calculated at 0.57, meaning that 57% of the variation in team performance was explained by variation in overall empowerment. F calculated value was 51.02 (at p d0.05). The hypothesis could not be accepted. It is concluded that employee empowerment had a significant effect on team performance in the organisation. 3.3 Empowerment initiatives of the organisation

Majority (63.4%) of SOs had previous experience in apparel industry, and 62% of SOs had some understanding of the concept of the empowerment and related activities. The Organization had provided training to SOs and supervisors to enhance their decision making skills. Training sessions included computer training, lean manufacturing, 6-S, machine and technical training, defects identification, and problem solving techniques. Knowledge and skills gained from training facilitated autonomous decision making without overly depending on the supervisor. Availability of advisory services, counselling, and library facilities enhanced the personal and group capacities of employees. The Organization had a team based rewarding system, which aimed at facilitating team empowerment through enhancement of team cooperation, delegations and cohesiveness. The Organisation had a suggestions culture, wherein management support was provided to implement the better suggestions and to reward employees. They had two main meetings viz; the cross functional meeting to solve operational problems with the attendance of supporting departments, and the management meeting for strategic decisions. There was an initiative to enhance the personal lifestyles of non-executive level female employees (especially the sewing machine operators). It was designed to facilitate employees to go beyond their traditional obstacles in life, and to help them earn additional income through secondary sources. This was practiced as a CSR activity, which helped to develop the image of employees bringing them a sense of achievement. Designating of employees in the organization was note-worthy. Sewing Machine Operators were designated as Team Members, which instilled in them a sense of belongingness, and a pride of their role within the organization. Supervisors were designated as Team Leaders instilling a sense of achievement in them. They were sharing the same canteen with the senior staff. Organisation also encouraged a first name culture among employees, which is not the norm in Sri Lankan/ Asian culture.
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However, there was a marked difference in the status-quo between SOs, supervisors, and rest of the staff. Probably the nature of their routine-work pattern and the seemingly inferiority image of sewing machine operators in the society would have also contributed towards it.

4.

CONCLUSIONS

Study has established that team performance has a positive relationship with team empowerment. This paper concludes that highly empowered teams are found effective at work. The research model was found highly significant. Among the six sub variables of team empowerment, respondents had a strong belief in their teams and their culture at work. They had performance pride instilled in the work environment. However, the turnover of sewing machine operators seemed to have slowed down the progress of teams. The six sub variables of empowerment seemed to have triggered each other, resulting in positive synergistic effects. Results of this study would be useful for managers and academics to understand the importance of team empowerment for team performance. It warrants extended studies considering other critical success factors like learning, job satisfaction, balance of member contribution/ effort, mutual support/ cohesion, conflicts, coordination, and cooperation. These form elements of social behaviour at work in terms of activities, interactions and sentiments. Though the study was limited to one well established manufacturing plant, the findings will be helpful to create empowerment for work teams, especially in the Asian context. Study recommends executives to create an empowered environment for better team performance, and for organisational effectiveness.

REFERENCES Albert, S. and Fetzer, R. (2005). Smart community networks: Self-directed team effectiveness in action, Team performance management, Vol.11 (5/6):pp144-156. Central Bank of Sri Lanka, Annual Report, 2009, pp 15-60 Athreya, V. and Chunkath, S. R. (1996).Literacy and empowerment sage publications, New Delhi, ISSN: 0971 - 3336 Bowen, D. E. and Lawler, E. E. (1992).The empowerment of service workers: What, why, How, and when, Sloan Management Review, vol.33 (3), pp31-39.
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Cacioppe, R. (1998).Structured empowerment: an award-winning program at the Burswood Resort Hotel. Leadership & Organization Development Journal, Vol. 19 Iss: 5, pp.264 274 Ettorre, B. (1997).The empowerment gap: Hype vs. reality. BRFocus,Vol.62, pp. 4-6 Fetterman, M. Kaftarran, J. Wandersman, A. (1996). Empowerment evaluation knowledge and tools for self-assessment and accountability , California: SAGE publications, Inc.USA, ISSN: 0013 - 9165 Gemuenden, H. G. andLechler, T. (1997) Success Factors of Project Management: The Critical Few: An Empirical Investigation, Portland International Conference on Management of Engineering and Technology, pp. 375 377. Harrim, H. M. And Alkshali, S. J. (2008).Employees empowerment and its effect on team effectiveness: Field study on Jordanian construction firms, Jordan journal of business administration,Vol.4, Iss.01, pp 107-121 Hoegl, M. And Gemuenden, H.G. (2001).Teamwork quality and the success of innovative projects: A theoretical concept and empirical evidence. Organization Science,Vol. 12, pp. 435449. Kirkman, B. L. and Rosen, B (1999), Beyond self-management: Antecedents and consequences of team empowerment. Academy of Management Journal, Vol.42, pp. 5874. Liker, J K (2003).The Toyota Way, 1st ed., McGraw-Hill, NY Martin, H. and Hans, G.G. (2001).Team work quality and success of innovative projects: A theoretical concept and empirical organization science, Vol. 12, Iss.04, pp.435-449. Psoinos, A. and Smithson, S. (2002).Employee empowerment in manufacturing: A study of organizations in UK. New technology, work and employment, Vol.17, Iss.02, pp.132 148 Schwartz, S.H. (1994).Beyond individualism/collectivism: New dimensions of values. In. Kim, U. Triandis, H.C. Kagitcibasi, C. Choi S.C. and Yoon, G., Individualism and collectivism: Theory application and methods. Sage, Newbury Park, CA Vosburgh, R.M. (2007).The Evolution of HR: Developing HR as an internal consulting organization, Human resource planning, Vol. 30, Iss.03, pp.11-12.

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TALENT MANAGEMENT PROCESS AND GROWING ORGANIZATIONAL COMPLEXITY Chathuri Galappaththy Senior Assistant Manager - Human Resources, Ceylinco Insurance PLC (Life) chaturi.galappaththy@gmail.com

ABSTRACT Firms resort to Talent Management in order to obtain a competitive advantage from people. Talent management cannot be adopted as a blanket strategy for any organization. Talent management needs to be customized to suit the context of the organization. However, pillars of talent management define the success of talent management process in an organization. At the same time, over time, organizations tend to grow in complexity. Organizational complexity is created by 1. Structural Mitosis, 2. Process Evolution, and 3. Product Proliferation, over time. Managing the Organizational Complexity should be a focus of the management of the organization, if the talent management process to be successful. This paper examines the relationship between the Organizational Complexity and the level of tenants of talent management. Key words: Talent, tenets of talent management, complex organization, complexity, structure, process, product.

WAR FOR TALENT The varying demographics of the labour market, long-term skills shortages and employee demands for worklife balance have created a so-called war for talent. Successful organizations strive to improve their strategies, policies and practices for the attraction, development, deployment and retention of talent, fundamental for their business requirements. Hence organizations nowadays seek to understand the capabilities required for their organization and determine the actual or probable talents required of employees (CIPD, 2006).
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According to the literature available, there is no one approaches to talent management that can be applied to all organizational settings. Each organization has different resourcing needs for its current and future talent pipeline, as well as different concerns on how best to meet these needs. These are the considerations that determine the talent strategies organizations develop (CIPD, 2006). The Researcher probe in to the issue of Effect of Organizational Complexity on the Success of Talent Management within organizations.

TALENT MANAGEMENT DEFINED To provide a meaning is difficult since its generally a complex undertaking that operates within the limits of strategic human resourcing. Talent management demands HR professionals and their clients to understand how they define talent, who is talented, and what their distinctive backgrounds might be and whether to consider those recruits as gifted. Talent can be considered as a complex combination of employees skills, knowledge, cognitive ability and potential. Employees values and work preferences should also be taken into consideration (CIPD, 2006). Why companies are paying more attention to recruiting? Its because recruiting is more than just filling positions. It gets into talent management, and involves succession planning. Retention is just as vital. Companies must go in to basics of welcoming employees and help them assimalate in to the company. If asked on how employees felt about their own companies on-boarding and integration process, the feedback will show the level of the same, which will not be positive (Emerson, 2006). Talent management is also known as human capital management. Talent management comprise of recruitment and on-boarding as well an integrated set of goal-setting, performance management, assessment, compensation management, learning, and career and succession planning processes. These processes are intended not only to retain employees, but to promote continuing development of the skills and competencies needed to achieve the organizations short term goals as well as long term strategic objectives (Plateau systems Ltd, 2008). Talent Management is a strategic and holistic approach to both Human Resources and business planning which improves effectiveness of the organization. And it enhances
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performance in every level in the workforce thus allowing everyone to reach their potential, no matter what it is (Ashton et al., 2005). This interpretation of talent management provides a strategic balance between performance and potential. Performance focuses on both the past and the present, whereas potential focuses on the future. The idea is that potential exists and it can be developed (Ashton et al., 2005). Cultural attributes of current or historic nature may play a part in defining talent. Many organizations accept that talent, when aligned with business strategy will change in definition as strategic priorities change (Ashton et al., 2005). Talent management is the additional management processes and opportunities that are made available to people in the organization who are considered to be talent (Blass, 2007). The definition of talent can also vary between organisations, or within the same organization over time. Many organizations identify individuals across the organization in terms of performance and potential, and they are marked high performers with high potential who are most often the focus of talent management (Blass, 2007). It seems that organizations define talent through some reference to potential. These are people who are showing some potential to grow in the organization. Everyone might be considered high potential in some organizations at different points in time, while in other organizations an individual may need to come to a certain level in the hierarchy in order to be considered high potential. Organizations will decide how and who to label as high potential (Blass, 2007). Others may define talent as crucial skills set, which has become difficult to obtain in the labour market. Any organisation has a talent management system whether it accepts it or not. Most talent management processes and systems fall within the domain of human resource management and line management. The incorporation of these management systems and their configuration with the business strategy is vital, but generally they are developed separately (Blass, 2007).

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Organizational Complexity perspective Organizations tend to add layers upon layers over time as a response to the environmental pressure (Ashkenas, 2007). Following are characteristics of such complex organizations; 1. Ungovernable 2. Under performing 3. Navigating the structure than concentrating on results 4. Unclear accountability 5. Data are sliced and diced away without clear idea of how to use them. (Ashkenas, 2007) Causes for organizational complexity as follows; 1. Structural Mitosis 2. Product Proliferation 3. Process Evolution (Ashkenas, 2007) Mitosis is a biological concept of cell multiplication (Wikipedia foundation, 2010). Starting from the complexity theory and organizational evolution, this biological concept was related to the organizations and structure of organizations. Complexity theory is used to understand how organizations or firms adopt to their environments. This theory treats organizations as collections of structures and strategies. When complex adaptive systems share the properties, they are more likely to adapt to their environments (Figure 1) and thus survive (Wikipedia foundation, 2010). Complex adaptive systems are complex where they are diverse and made-up of multiple interconnected elements, adaptive where they have the capacity to change and learn from experience (Wikipedia foundation, 2010). Complex Adaptive Systems defer from Multi-Agent systems by features like self-similarity, complexity, emergence, and self-organization. Multi-Agent System is identified as a system with multiple interacting agents. Complex adaptive systems possess the properties of adaptation, communication, cooperation, specialization, spatial and temporal organization and reproduction (Wikipedia foundation, 2010).
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Figure 1 : Illustration of complex adaptive systems

Source :Wikipedia foundation (2010) Structural mitosis is the term that was used for the multiplication of functional elements of the structure (Ashkenas, 2007). Such organizational multiplications may occur as simple changing of reporting channels, job moves, accommodation of personal preferences, multiplication of functional departments, and establishment of new functional units for shared services will fall under the structural mitosis. Such changes may be triggered as quick solutions to the environmental pressure, to satisfy CEOs ego issues, or any other reason (Ashkenas, 2007). Companies improve their products. These improvements may come as package changes or to new features and new products. Such moves are mandatory to counter the forces of intense competition of existing competitors, new entrants, or counter the competition of substitutes (Porter). With the addition of features for existing products or with the introduction of new products, the organization structure needs to be expanded as well. This may be achieved with the addition of brand management functions to the existing structure or adding entirely new SKUs (Ashkenas, 2007). Large organizations are good at expanding the structure than pruning the structure (Ashkenas, 2007). Customers of such organizations also get affected with the organizational complexity (Ashkenas, 2007). Proliferation of product portfolio is caused by addition of brands without pruning them. Product proliferation do contributes to the structural mitosis as well (Ashkenas, 2007).
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Major efforts of Process Reengineering, ISO, Six Sigma, and Lean Manufacturing place emphasis on the streamlining of the core operation of an organization. Such processes are mostly streamlined due to high concentration on these processes. On the other hand the supporting processes are not given due consideration on the same ground. Processes of budgeting, customer services, Information Systems development, and employee benefit management, tend to evolve over time without much of streamlining or reengineering. Such free evolution makes room for management battles inside the organization. Uncontrolled process evolution does cause process inefficiencies (Ashkenas, 2007). In addition to the Structure, Products, and Process there is a contribution from the management as well for the increased complexity. Management habits also contribute towards the organizational complexity. Senior Executives ad-hoc queries result in complex data gathering tasks down the line. Even though the CEOs request is relatively simple, gathering required information from the organization and compiling the same with proper processing may be a major exercise for the organization. Example from Zurich financial services shows that their subsidiaries were maintaining non standard key performance metrics that had evolved over time as a result of Senior Executives requests. Standardizing these made a huge saving for the management (Ashkenas, 2007). HR Transcending to Talent Management Human Resources departments and personnel of today show a change in the way businesses recognize HRs function. They are changing from HR or personnel director to vice president or director of talent management or talent acquisition. The market for key talent is highly competitive and lots of counter offers are very common. The imminentmass departure of the baby boomer will create openings that will be ever more difficult to fill (Emerson, 2006). For HR to become a value-added partner in business, it needs the resources, tools and management recognition to get the administrative tasks under control and elevate to a place of strategic adviser (Millar, November 2007). With the introduction of the word War for Talent, HR function has to focus on efforts on building a talent process and programmes for the organizations. However to obtain a significant difference, a drastic effort on how talent is seen and managed is
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needed. In order for Talent Management to become a way of life, it should be practiced in all levels of the organization (Warren et al., 2008). Figure 2 : Evolution of the HR Function

Source : Bersin et al (2006) Talent Management Priorities for Human Resources Following will guide you in selecting a mix of approaches and practices that will make a difference to the talent management efforts in the organization: 1. 2. 3. 4. 5. Rethinking and re-establishing the talent focus talent classifications, values and principles, business perspective, and talent market trends. Positioning talent management strategic decisions, actions and how talent processes are designed and delivered. Integrating talent and business the TM system and position with the strategic management process and annual or quarterly operating plans. Leading the talent focus the quality of leadership focus, route and classify talent roles. Examining culture and talent approach common language, consistent messages and cultural attributes and negative influences.

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6.

Assessing capability and accountability defining talent capabilities, accountabilities for talent, quality and frequency of talent conversations and talent measures and evaluation.

7. 8. 9. 10.

Process design and implementation people and technology issues, success rates from talent processes and process shortcomings or failures. Assessing talent performance improved talent growth, realizing potential, talent exploitation and talent performance. The talent agenda to keep this agenda fresh and responsive through continued support, regular analysis, regularity of discussions, etc. Reviewing talent management to set up how well you compare with other organizations internally in talent focus, delivery and shortcomings. (Ashton et al., 2005)

Talent Management Process Organizations are made up of people who create value through established business processes, innovation, customer service, sales, and many other activities. Consecutively to meet the business goals, organization must make sure that it has a uninterrupted and integrated process for recruiting, training, managing, supporting, and compensating these people. The following chart shows the complete process (Bersin et al., 2006). Figure 3: Talent Management Process

Source : Bersin et al (2006)

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Workforce planning should be incorporated with the business plan. This process establishes workforce plans, hiring plans, compensation budgets, and hiring targets for the year (Bersin et al., 2006). Through an integrated process of recruiting, assessment, evaluation, and hiring brings people into the organization (Bersin et al., 2006). On-boarding means an organization must train and allow employees to become productive and incorporated into the company more quickly (Bersin et al., 2006). Performance Management is by using the business plan, the organization set up processes to measure and manage employees (Bersin et al., 2006). Training and Performance Support is a key function. It provides learning and development programs to all levels of the organization (Bersin et al., 2006). As the organization grows and changes, there is a need to move people into new positions. Succession planning, a very important function, enables managers and individuals to identify the right candidates for a position. Succession planning has to be aligned with the business plan to understand and meet the need for key positions 3-5 years out. Although Succession planning is a process set aside for managers and executives, it is applied across the organization (Bersin et al., 2006). In compensation and benefits, organizations try to align the compensation plan directly to performance management so that compensation, incentives, and benefits, support business goals and business implementation (Bersin et al., 2006). Critical Skills Gap Analysis is a process often done on a project basis, and is critical for the business. Government, utilities, telecommunications, and energy are facing large populations which are retiring. Its important to identify the roles, individuals, and competencies which are leaving. Organizations nowadays are working towards filling these gaps (Bersin et al., 2006). In the centre of this process (Figure 3) are important definitions and data: job roles, job descriptions, competency models, and learning content (Bersin et al., 2006). In The Economist article, Building an integrated talent management strategy by Bill Millar, identifies the following areas of recruitment, talent mapping, work force planning and development, performance planning and evaluation and retention as areas of Talent Management (Millar, November 2007).

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Under recruitment the following is discussed: Isthe organization hunting the right people? Is the organization successfully in attracting the right candidates? Data on such information can be gathered and analyzed to generate benchmarks. Also organizations must work on methods to track the effectiveness of competing recruiting techniques (Millar, November 2007). Talent Mapping provides the organization with business and strategic direction. It determines the mix of talent and skills that will help the organization to execute its tasks effectively. Methods have to be deployed to develop or acquire the correct mix if its not available inside. Using Talent Mapping Human Resources executives can develop recruiting strategies and design training programmes that focus on existing or future needs (Millar, November 2007). Workforce planning and development focuses on getting the organizations human capital from today to future state. In order to do this: Form detailed workforce planning and skills gap assessments; Identify high-potential employees and provide them with extra development and retention strategies and Adopt more supple development activities and use e-learning to reach much wider audience (Millar, November 2007). Performance Planning and Evaluation is very important. When managers communicate what they expect from their employees, and how these targets tie into compensation, it helps employees become more engaged and effective. Employees who know where they add value do a better job in doing so. Many tools are available to help managers to develop feedback about the performance expectations and actual performance. Its also important to evaluate the effectiveness of performance metrics (Millar, November 2007). Retention is another area which enables you to identify clusters of key talent, set retention benchmarks, apply retention strategies, and then evaluate and refine approaches over time. For example, clear and broadly implemented retention processes can help companies to: Identify individuals with the characteristics of acritical performers, and manage their development, compensation and engagement Identify the early warning signs of employee defection, in time to act;
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Identify which combinations of incentives have an effect on behaviour and retention, and set up the funds for rewards and Set up a formal learning and development plan for all employees and track growth by individuals or groups of like employees. (Millar, November 2007) Although talent management processes can be aided by HR, technology strategy must come first. Foremost you need to know what you want to accomplish for your business and how better management of people can assist to achieve your expectations. Once a company knows what it wants to accomplish in HR, that technology becomes a tool to help you achieve your strategy (Millar, November 2007). An intergrated talent management framework based on HR tecnnology solutions will help an organisation to find answers for talent related questions much more easily and faster. An integrated talent management framework can be defined as a secure, single platform, workflow driven system that leverages a single data model and is inclusive of the core HR system of record and all talent processes (Oracle Corperation, March 2008). An intergrated talent management framework means a broad range of practical and decision-making capabilities for strategically handling present and future business issues within a reliable, end-to-end framework. Such a system empowers the organization with insight, agility, efficiency and consistency in talent management (Oracle Corperation, March 2008). In Managing talent for competitive advantage,an article published by CRF, Chris Ashton, and Lynne Morton identifies Talent Management as the integration of many initiatives, bundled up in to a one activity. In it Talent Management is described in following key words: Ethos Implant values and behaviour, to support the view that everyone is worth developing. Focus knowing key positions and making sure the best person is holding it at the right time Positioning Talent Management has to be practiced across the organization. Structure creating tools, processes and techniques with clear liability to ensure that the work gets done.
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System assist a long-term and holistic approach to generate change (Ashton et al., 2005). Talent management is an integrated system, with all the pieces fitting together within the system. This will operate parallel with strategy, business planning and the organizations approach to people management (Ashton et al., 2005). To obtain such integration the article provides a systematic view of talent which contains five elements (Figure 4): 1. Need the business needs resulting from the business model and competitors 2. Data collection the basic data that is crucial for good talent decisions 3. Planning people/talent planning guided by data analysis 4. Activities - the transfer of plans into integrated sets of activities 5. Results - criteria to evaluate the value and impacts (Ashton et al., 2005) Figure 4 : The CFR talent management process

Source : Ashton et al., (2005)

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Using this system, Talent Management becomes a strategic activity rather than a standard set of HR processes, if the right conditions, context, time scales and offerings exist (Ashton et al., 2005). The Four Tenets of Talent Management In order for Talent Management to be truly embedded, there should be a drastic change in management capability and organizational culture. With a constant focus on each of the four tenets of talent management and their principles, talent management can become a way of life for all organizations (Warren et al., 2008). Talent Intelligence is building a common language, infrastructure, and a reliable set of standards that enable talent to be effectively managed. Talent Capability bringsTalent Management to life by allowing managers at all levels to attract develop and retain the best. Talent Alignment requires talent management to be vital to the strategic goals of the business and at the centre of the Human Resources program. Talent Culture is going beyond talent processes, making Talent Management a way of life in the organization (Warren et al., 2008). By using the above tenets organistations should be able to: Create a universal talent management classification that is generally shared and understood at all levels across all regions of the organisation. Build a manangement information system that can measure the present level of Talent Management and forcast the future needs. Senior managers of the organisation must be held liable for planting Talent Management at all levels. TM process should be simple, connected and spontanious throughout which will make life easier for line managers. Should be able to review the management roles and responsibilities. TM should be aligned with proper reward structure. Should manage the corporate Talent Management vision Build a culture of accountability, trust and oppourtunity. Coach line managers in the skills required for Talent Management (Warren et al., 2008)
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Table 1: For Tenets of Talent Management Tenets of TM Talent Intelligence Global Principle Language, infrastructure and standards are globally consistent. User Acceptance Principle Talent processes and interventions are designed for high user-acceptance. Talent Demand Principle Analytical talent management information is readily available. Talent Capability Capability Principle Recruit develop talent management capability at all levels. Accountability Principle Strengthen the accountability that all leaders have for managing talent through job design and reward structures. Talent Alignment Agility Principle The talent strategy is flexible to take face the changes in market/labour conditions. Line of Sight Principle Talent management is consideration in business decisions made at all levels. Stewardship Principle The talent strategy drives the HR agenda. Talent Culture Engagement Principle Develop an organizational culture that allows talented people to perform at their best. Sustainability Principle Create the conditions and environment where talent management becomes a way of life Source : Warren et al., (2008)
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Principles

Creating and Evaluating Talent Management Success In order to set and evaluate Talent Management priorities, start by deciding how the organization hopes to describe its human performance capabilities and capacity in the future. These will typically be focused on organizational strengths and areas of distinction both present and future. The steps - planning, setting goals, investing, performing and measuring, in creating and evaluation the talent management success is discussed under this topic (Butterfield, 2008). A Plan is the quantitative strategic strengths and competencies needed to achieve organizational expectations.The goals should be set in order to close the gaps in competency levels. Targets should be based on competencies that must be obtained. Provide quantifiable business plan that show initiatives to support the performance chain and obtain management support for the effort needed (Butterfield, 2008). Setting goals is identifying specific, measurable goals that will envisage success. This is established by identifying the needed organizational outcomes and Human Resources initiatives (Butterfield, 2008). After clarifying how Human Resources will realign generalist and specialist efforts to provide these initiatives, realign Human Resources budget to serve talent management initiatives. One should take responsibility for growth by replacement and seek initiativebased funding (Butterfield, 2008). Perform indicates integrating Human Resources initiatives and target to achieve expected organizational Performance. Obtain initiatives as planned, on time and within budget. And finally report progress in annual Human Resources reports and in the human capital plan (Butterfield, 2008). Finally measure the success by comparing outcomes with expectations. For instance check whether core skill areas have obtained a higher retention rate than the rest of the organization. Core skill areas should be compensated at or above the target market. There should be an improved performance in core skill areas with high performers in core skill areas report higher than average employee commitment. Internal promotion rates in key performance areas are higher than average.If the above is obtained, the Talent management programme that was implemented is a success (Butterfield, 2008).

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CONCEPTUALIZATION & OPERATIONALIZATION Conceptual Framework Figure 5 : Conceptual Diagram

Hypothesis Increasing level of organizational complexity will have a negative influence on the average level of tenets of talent management

DATA PRESENTATION & ANALYSIS Correlation of variables used in hypothesis Behaviour of the average of tenets of Talent Management (Figure 6) is analyzed for correlation using SPSS. Line of best fit was drawn using SPSS. Also Correlation Coefficient (Table 2) for average of tenets of Talent Management was also obtained through SPSS. According to the scatter graph, it shows a negative relationship between level of tenets of Talent Management and Organization Complexity. That means higher the Organizational complexity; lower the level of tenets of Talent Management.

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Figure 6 : Behaviour of level of Tenets of Talent Management Vs Organizational complexity

Statistical analysis shows that level of tenets of Talent Management is correlated to the organizational complexity with a correlation coefficient of 0.841 (Table 2), which is well over 0.65, and correlation is significant atthe 0.05 shows that there is a probability of 95% for this relationship to be true, or only 5% chance of this relationship to be wrong.

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Table 2:

Correlation Coefficient for level of tenet of Talent Management Vs Organizational complexity quotient Organizational Complexity Quotient Level of Tenets of Talent Management -.841* 03616.959 180.657 -3.392 36.131 6 -.841* .036 -16.959 .450 -3.392 6 6 2.249 6 1

Organizational Complexity Quotient

Pearson Correlation Sig. (2-tailed) Sum of Squares and Cross-products Covariance N

Level of Tenets of Talent Management

Pearson Correlation Sig. (2-tailed) Sum of Squares and Cross-products Covariance N

*. Correlation is significant at the 0.05 level (2-tailed).

Hypothesis testing Researchers hypothesis is; Increasing level of organizational complexity will have a negative influence on the average level of tenets of talent management Figure 6 depict the correlation between the Organizational Complexity Quotient and the level of tenets of Talent Management. Line of best fit drawn using SPSS shows that when the Organizational Complexity increases, level of tenet of Talent Management decreases.

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Table 2 depicts the correlation coefficient value between the Organizational Complexity quotient and the Level of tenets of Talent Management. Value of the correlation coefficient has taken a value of 0.841. A Correlation Coefficient over 0.65 establishes that these two variables are highly correlated. The significance is stated at 0.05 levels, establishing that in 95% of cases these two variables will be correlated. These facts prove that there is a correlation between the level of tenets of Talent Management and Organizational Complexity Quotient. Hence the null hypothesis, increasing level of organizational complexity will have a negative influence on the average level of tenets of talent management was accepted. Researchers null hypothesis is established with the analysis of empirical data.

CONCLUSIONS AND RECOMMENDATIONS 67% of the organizations in the sample had reached a significant level of complexity. Thus it would be an important initiative to use the tools gathered by the researcher in assessing the Organization Structure to assure the fitness of the structure for the organization and refining the structure for effectiveness. Product portfolio could be audited using the Brand Portfolio Audit to assess if all the products are having a healthy position. In cases where there are cash users, they need to be pruned using the methodologies in liquidating and making the core brands strong. Model T analysis can be used to access the level varieties that products should be maintained at, while making the brand strong. Processes of the organization as well, need to be audited using the framework identified by the researcher. In this framework, entire organization will be assessed for process enablers, and enterprise wise capabilities. If there are enablers which needed to be developed, organizations could develop them using training and development. By developing the enablers the organization could advance the process capabilities to higher levels. Researchers contribution from this research is to present the comprehensive set of tools from different sources into one place enabling organizations to reduce the organizational complexity, through which organizations will be in a better position to improve their tenets of Talent Management capabilities.

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Senior management could take initiatives for managing the complexity. Positive perception of managers inside the organization will be positive contributor for the success of the initiative. Its recommended that senior managers embark on this change with proper preparations, planning, and consultation with external express as well as internal employees. Since it was established that the age of the organization has no influence over the complexity, through efforts of management alone complexity can be dealt with. If failure in implementing and maintaining Talent Intelligence and Talent Alignment programmes are sensed and observed, organization structure can be analyzed for complexity. If failure in Talent Culture is observed processes in place can be analyzed for complexity. Talent Capability can be developed without any impact from structure or the process.

REFERENCES Ashkenas, R. (2007, December). Simplicity-Minded Management. Harvard Business Review . Ashton, C., & Morton, L. (2005, July/August). Managing talent for competitive advantage. Strategic HR review, 4 (5), p. 31. Bersin, Josh. (May, 2006). Talent Management,What is it? Why now? Bersin & Associates. Blass, D. E. (2007). Talent Management. Chartered Management Institute ; Ashridge Consulting. Brodbeck, P. W. (2002). Implications for organization design: terms as pockets of excellence. Team performance Management Journal . Bryan, L., & Joyce, C. (n.d.). 21st - Century Structure. Leadership Excellence . Butterfield, B. (Spring / Summer 2008). Talent Management Strategies for attracting & Retaining the best and the brightest. cupa-hr-College and University Professional Association for Human Resources . CIPD. (2006). Talent Management - Understanding the dimensions.

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Davis, S., & Meyer, C. (2000). Future Wealth. Boston, Massachusetts: Harvard Business School Press. Emerson, D. (2006, December). Talent Management. Minnesota Business . Eppler, M. J. (2006). The Concept of Knowledge Communication and its relevance to Management. University of Lugano. Goold, M., & Campbell, A. (2007). Do you have a well designed organisation. Harvard Business Review . Goold, M., & Campbell, A. (2007). Do you have a well designed organization. Harward Business Review . Gottfredson, M., & Aspinall, K. (2005). Innovation Vs Complexity. Harvard Business review . Gottfredson, M., & Aspinall, K. (2005). Innovation Vs Complexity. What is too much of a good thing? . Harvard Business Review . Hamm, J. (2006). The five messages leaders must manage. Harvard Business Review. Hammer, M. (2007). THe process audit. Harvard Business Review . Hunter, J. (2002). Improving organizational performance through the use of effective elements of organizational structure. Canadian School of Management. Kumar, N. (2003). Kill a brand, keep a customer. Harvard Business Review . Martnez-Tur, V., Peiro, J. M., & Ramos, J. (2001). Linking service structural complexity to customer satisfaction: The moderating role of type of ownership. International Journal of Service Industry Management . Millar, B. (November 2007). Building an integrated talent management strategy. Economist Intelligence Unit. The Economist. Moon, Y. (2005, May). Break free from the product life cycle. Harvard Business Review . Nohria, N., Joyce, W., & Roberson, B. (2003, July). What Really Works. Harvard Business Review . Oracle Corperation. (March 2008). Integrated Talent Management: Extending the Value of a . Oracle.

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Plateau systems Ltd. (2008). TM - Building a Successful Talent Management Strategy. Virginia: Plateau systems Ltd. Porter, M. Five forces. Taleo . (2006). TM International: The Keys to Global Success. Taleo Corporation. Tucker, E., Kao, T., & Verma, N. (2005). Next-Generation Talent Management. Hewitt Associates. Valle, S. A. (2002). The phenomenon of organizational evolution: a model for analysis. Leadership & Organization Development Journal . Vaughan, D. (1999). The dark side of organizations: Mistake, Misconduct, and Disaster. Annual Review of Sociology . Warren, Nick. (2008). Hewitt Talent Survey - Building the Talented Organisation. London: Hewit Consulting. Wellins, R. S., Smith, A. B., & Erker, S. (2009). Nine best practices for effective TM. Development Dimensions International . Wikipedia foundation. (2010). Retrieved 2010, from http://en.wikipedia.org/wiki/ Main_Page www.businessdictionary.com . (2010). Retrieved www.businessdictionary.com/definition/formalization.html from http://

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EMPLOYEE PERCEPTION ON THE EXISTING PERFORMANCE EVALUATION SYSYTEM: AN EMPIRICAL INVESTIGATION AT STAR-TEL (PVT) LTD
Ayoma Lakmali Aberathna ayomaa@slt.com.lk

ABSTRACT: This study attempted to understand the employee perception on the existing performance evaluation system of the Star-Tel (Pvt.) Ltd. At the time of this research study the company has been using a performance evaluation system that is based on the forced distribution method for categorizing employee performance and subsequent rewards. Although there are many previous studies about forced distribution method done on factors affecting employee performance, there are only a very few researches conducted in the telecommunication industry. In this study, three independent variables, or in other words factors, related to employee perception on performance evaluation method that affect employee performance, were tested for its applicability at Star-Tel (Pvt.) Ltd. The data was collected through a questionnaire. According to the results obtained it was revealed that employee performance has significant positive relationships with employee satisfaction on Performance Management (PM) method, perceived fairness of PM method and employee morale on PM method. Based on the findings of this study the above positively related factors are recommended to the managements of the respective organizations to improve their respective performance evaluation systems. Accordingly, the researcher presented recommendations to the management. Further, the limitations of this study were also identified and the researcher has given directions for future research in this area. Key words: Employee perception, performance evaluation, performance management, employee satisfaction
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1.

PROBLEM / ISSUE IN FOCUS

For organizations to survive in the present competitive environment it is necessary to have a competitive advantage. The technology is evolving very fast in the telecommunication industry. Thus it is important for organizations to retain their best people by a suitable rewards systems, which is based on a transparent and a widely accepted performance evaluation system. This research extensively focuses on the employee perception of the organizational performance evaluation system in the StarTel (Pvt.) Ltd and its impact on employee performance. When grading employees at Star-Tel (Pvt.) Ltd, they are placed in to various performance categories based on a pre-determined percentage. That is for a given section (department) of the company, percentage of grades that can be handed out is predetermined. For example only 5% of the employees can have a A+ grade (A+ for, Excellent Performers) An A grade (A for good performers) is given to only 10% of the staff. This is illustrated in the below Table 1 : Performance Category and Allocation of Percentage
Performance Category A+ A B C D Allocation and Percentage 5% 10% 25% 40% 10%

What kind of an impact does the above pre determined performance categorization have on employee performance? Does it impact employee moral? Does it have a dampening effect on employee morale, leading to de-motivation? Do employees feel that no matter how they perform, they are not going to be rewarded due to the quota system being enforced by the organization in performance grading? Is it perceived as a fair system of evaluation, in an environment where team work is touted, but employees are graded on individual achievements? Is it perceived as fair in the
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sense that lower grade/category employee have an equal probability of getting a higher performance category as of their superiors, who at most times are exposed and credited with divisional achievements, due to the way how work is structured in organizations? Overall, are employees satisfied about the performance evaluation method? Do all these factors in culmination, affect employee performance in any way, positively or negatively? These are some of the questions that this research undertaking sought to answer, in the context of Star-Tel (Pvt.) Ltd. The objectives of this study were three-fold 1. To determine the level of satisfaction of employees with regards to the performance evaluation method (rating method) adopted 2. To determine the impact of the selected evaluation method on employee morale and thereby the achievement of organizational goals 3. To determine the tendency of performance evaluation method to favour higher grade employees in organization hierarchy when compared with lower grade employees It was the objective of the researcher to determine the suitability of performance grading method used at Star-Tel (Pvt.) Ltd in determining employee rewards which is in the form of a performance related pay scheme. The impact that the performance management system will have on the subsequent employee performance as a result was studied from the perspective of employees. Majority of the employees of the organization may not be satisfied with the current performance evaluation system in use. If there are a higher percentage of unsatisfied employees, it would mean that they consider themselves to be not properly rewarded for the work they perform for the organization. This would lead to a de-motivated staff and non achievement of organizational goals in future. If this is the case, as it is to be found out from this research study, the company can look into revising its current performance grading scheme. For an organization to be high performing, its employees need to be highly motivated with a high morale amongst them. Financial rewards that are based on employee performance may not be the only motivator for employees. There can be other non financial rewards in working for the company as well. It is an objective of this study
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to determine the impact of the performance grading method on employee morale, by considering the level of importance with which employees treat the companys employee rewarding scheme. Therefore it is an objective of this study to determine the fairness of the current performance grading method used at Star-Tel (Pvt.) Ltd, from the perspective of its employees. Based on this output, the company can take appropriate measures.

2.

LITERARY REVIEW

Virtually all companies have some formal or informal means of appraising employees performance. Performance appraisal is defined as any procedure that involves, setting work standards, assessing the employees actual performance relative to those standards, and providing feedback to the employees with the aim of motivating him or her to eliminate performance deficiencies or to continue to perform above par. Performance management is defined as a process that unites goal setting, performance appraisal, and development, into a single, common system whose aim is to ensure that the employees performance is supporting the companys strategic aims (Gary Dessler11th edition). If one were to spend several days in Toyotas Lexington, Kentucky, Camry plant, the absence of appraisal would soon be apparent. Supervisors dont sit down with individual employees to fill out forms and appraise them. Instead, teams of employees monitor their own result, continuously adjusting how they do things to align those results with the work teams standards and with the plants overall quality and productivity needs. The fact that managers are emphasizing such a performance management approach reflects several things; they are total quality, appraisal issues, and company strategic focus. Therefore todays management writers define performance management in a broader sense. Michael Armstrong in his book Art of HRD (1999) has defined performance management as the process or set of processes for establishing shared understanding of what is to be achieved, and of managing and developing people in a way which increases the probability that it will be achieved in the short and longer term. Armstrong (1999) defines performance management as the process of developing and implementing strategies, policies and systems which helps the organization to achieve
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its objectives by obtaining and keeping the people it needs and by increasing their motivation and commitment. Rewards management process of a company is concerned with intrinsic as well as extrinsic motivation of its employees with financial as well as non financial rewards. Financial reward system will incorporate procedures for tracking market rates, valuing jobs, designing and maintaining pay structures, paying for performance and skills and providing employee benefits. The non financial rewards system will satisfy individual needs for variety, challenge, responsibility, and influence in decision making, achievement, recognition, skills development and career opportunities (Armstrong, 1999, P: 177). Performance related rewards management is only a component of overall rewards management process of a company. To reward employees, the company must first rank its employees from best to worst. For this purpose, sometimes companies adopt a forced distribution method, which was first popularized by General Electric (Dessler, 2008). Jack Welch, retired Chief Executive Officer of General Electric (GE), is most often associated with forced ranking. The forced distribution method is similar to grading on a curve, where you place pre-determined percentage of rates into several performance categories. The proportions in each category need not be symmetrical. GE used top 20%, middle 70%, and bottom 10% for managers. One practical, if low-tech, way to do this is to write each employees name on a separate index card. Then, for each trait (quality of work, creativity, and so on), place the employees card in the appropriate performance category. However GE has recently been injecting more flexibility into its system. For instance it now tells managers to use more common sense in assigning rankings, and no longer strictly adheres to its famous 20/70/10 split (Dessler, 2008). According to Gary Dessler (2008, P: 347), one survey found out that 77% of responding employers using this approach were at least somewhat satisfied with forced ranking, while the remaining 23% were dissatisfied. The complaints: 44% said it damages morale. Forty-seven percent said it creates interdepartmental inequities. High performing teams must cut 10% of their workers while low performing teams are still allowed to retain 90% of theirs. Some writers refer unkindly to forced ranking as Rank and Yank. About a fourth of fortune 500 companies including Microsoft, Conoco, and Intel use versions of forced distribution.
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Sun Microsystems force-ranks all its 43,000 employees. Managers appraise employees in groups of about 30, and those in the bottom 10% of each group get 90 days to improve. If theyre still in the bottom 10% in 90 days, they can resign and take severance pay. Some decide to stay, but if they are still in that group the firm fires them without severance. This dismissal policy seems somewhat standard. It reflects the fact that top employees often outperform average or poor ones by as much as 100%. Sometimes attempting to implement forced ranking fails; Jacques Nasser, a former CEO, famously left in part due to resistance to his advocacy of such a plan. This was followed by the review of the literature on factors affecting employee satisfaction. Here the author presented the findings of few researches done in other countries and industries. Thereafter, from among the many variables that were found to influence organizational commitment by many researchers, those which have relevance and indicated by the respondents of the preliminary interview were selected for the study. Then supporting literature was presented for those variables in order to develop the conceptual framework.

3.

CONCEPTUAL FRAMEWORK AND METHODOLOGY

Accordingly, this research will examine the effect of three factors on employee performance. These three factors are taken as independent variables and employee performance will be the dependent variable in this case. The independent variables are, employee satisfaction of performance management method, perceived fairness of performance management method, and impact of performance management method on employee morale. The following conceptual model can be developed as per the observations in the literature survey and the information gathered at the preliminary survey.

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Figure 1: Conceptual Framework of factors affecting Employee Performance

1. Employee Satisfaction of performance management method 2. Perceived fairness of performance management method 3. Impact of performance management method on employee morale

Employee Performance

From the arguments developed under the conceptualization, the following six hypotheses can be developed under the three categories of employee satisfaction. Hypotheses related to Employee Satisfaction of performance Management Method, the null hypotheses, and alternative hypotheses, can be formed as follows. H0: H1: Employee satisfaction of performance management method has no impact on employee performance. Employee satisfaction of performance management method has an impact on employee performance. Hypotheses related to Perceived fairness of Performance Management Method, the null hypotheses, and alternative hypotheses, can be formed as follows. H0: H1: Perceived fairness of performance management method has no impact on employee performance. Perceived satisfaction of performance management method has an impact on employee performance. Hypotheses related to impact of performance management method on employee morale, the null hypotheses, and alternative hypotheses, can be formed as follows. H0: H1: Impact of employee morale from performance management method has no impact on employee performance. Impact of employee morale from performance management method has an impact on employee performance.

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This research was conducted among a convenient sample of all levels of employees, that is stratified sampling method,at Star-Tel (Pvt) Ltd. The data was collected through a questionnaire which was distributed by hand.The questionnaire was primarily based on a Likert scale. The total questionnaire comprised of 44 questions. The first five questions are to gather demographic information of the employee. Questions six to thirty six consist of the Likert scale questionnaires. Questions thirty seven to forty are polar questions (Yes-No questions). At the end, four open ended questions are there to gather qualitative data.The 5 answers of the questionnaire were quantified as Strongly Agree - 5 points, Agree 4 points Neutral- 3 points, Disagree 2 points, Strongly Disagree 1 point. Data was analyzed using statistical tools. Based on the results of the correlations the hypotheses were tested. Regression analysis was used to test the strength of the relationships.

4.

DATA PRESENTATION AND ANALYSIS

In this chapter the collected data by the respondents of the all level of employees will be presented and analyzed. Thereafter the findings will be presented. The statistical data analysis was done using both the exploratory and descriptive methods. The mean, standard deviation, and the coefficient of correlation are calculated in order to analyze the data and to test the hypotheses formed. The relationships among the variables in the conceptual framework are established through analysis of correlation coefficients. The responses obtained for each question for measuring a variable was averaged for each of the variables. This was done for each respondent separately. Then the resulting processed data was input to analyze other variables. A total of 50 responses were received. Since all the questions except the open ended questions were made compulsory questions, all the received responses were complete. A total of 28 respondents had answered the three optional open ended questions. All the responses were take into consideration. According to the analysis of composition of the sample gathered, it was observed that a significant 44% of the respondents were from the age group of 20-30 and 28% of the respondents were from the age group of 31-40. Another 28% were from the age group 41-50; this means that most of the participants in this study were employees
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who were in the initial stages of their career. It was also observed that 42% of the respondents were female. The fact that in the telecommunication field the proportion of females in the technical departments is very small compared to males can be given as an explanation for this observation. The samples categorized according to the level of education of the employees in the organization. From this it can be observed that a majority of the respondents (48%) were professionly qualified employees. 30% respondents were university degree holders. Next 16% respondents had completed G.C.E A/L. And 6% of respondents were MBA/M.Sc qualified employees. According to the job level of the employees in the organization, it was observed that a majority of the respondents (52%) were non-executives,22% executives, 16% technical staff and 10% supervisors. Considering the length of service in the company it was observed that a majority of the respondents (50%) have one to five years of service, 30% employees from 11 to 20 years of service, 12% have 5 to 10 years of service, and 8% employees have been in service for more than 20. Tabel 2: Means and Standard Deviations of the variables
Variable No Statement No N = 50 Variable Mean Standard Deviation 1.146 0.640 4 4.84 3.19 2.70 0.863 Skewness 0.323 0.321 0.436

1 9 10

Employee Satisfaction of PM method Employee satisfaction of OM method is important factor for motivation I am satisfied with the current PM technique (performance grading) which is in use in my organization I look forward to my performance appraisal meeting I would be happy if the organization adopt a different PM method Company has a problem in grading employees Perceived satisfaction of PM method has an impact on employee performance Perceived Fairness of PM method Pre determined percentage ( Forced distribution method) for various performance categories is fair
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3.88 4.40

0.361 -0.590 0.606 -0.458

2.44 3.72 3.88

11 12 21 40 02 13

0.918 -1.239 0.782 -0.533 0.792 -4.841 0.292 -0.059

Variable No

Statement No

N = 50 Variable Mean Standard Deviation 0.785 0.990 0.646 0.884 0.960 0.968 Skewness 0.408 0.763 0.629 0.097 3.821 0.621

14 15 16 17 18 19 20 22 23

Current PM technique used in our organization is fair Am I evaluated fairly Higher performance grades are mostly given to employees in higher job levels Rarely lower grade employees get higher grade Limited percentage for higher grade is a result of inter department inequalities Limited percentage for higher grade is unfair There is tendency for performance evaluation method to favour higher grade employees There is no favouritism in performance evaluation Employee performance is graded taking into consideration the different tasks performed by each employee There are no favouritisms in allocating performance grades Performance grade in this organization largely depend on what kind of relationship one has with the top management Do you think pre determined percentage (Forced Distribution Method) for various performance categories are fair? Have you ever notice inter department inequalities within same grade employees? Impact of PM method on employee morale There are career advancement opportunities with this performance evaluation method. Limited percentage for higher grade results in decrease in employee morale I feel I can improve on my performance grade if I work hard There are others in my division who will always get better grades as they carry out more important work from the organizations perspective
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2.42

2.56 0.993 0.218 3.94 3.38 3.80 4.14 3.60 2.60 1.132 -0.669 0.923 0.199 0.728 -0.330 0.783 -0.255 0.833 -1.324

3.52 2.46

1.015 -0.361

24 28

3.44

37

1.24 4.84 3.60 3.24 3.88 3.04

39 03 26 29 33 34

0.792 -4.841 0.394 -0.286 1.238 -0.479 0.718 -0.506

2.84 0.912 0.835

Variable No

Statement No

N = 50 Variable Mean Standard Deviation Skewness

35 36

I feel I have a little chance in getting a higher grade as performance grade quota is limited My performance grade is an indication of how much the organization values my work Do you think limited percentage for higher grade resultsin decrease in employee morale? Employee Performance My performance grade is a fair reflection of my contribution to the organization I can usually guess the performance grade I will be getting before the performance appraisal I have been getting the same performance grade for the past three years I am satisfied with my last years performance grade My performance grade is an indication of how much the organization values my work

3.80 0.857 -1.013 3.54 0.930 -0.834

38 04 25 30 31 32 36

4.84 3.48 3.20 3.48 3.82 3.36 3.54

0.792 -4.841 0.40 -0.145 1.050 -0.198 0.863 -0.333 0.983 -0.830 1.064 -0.358 0.930 -0.834

The lowest mean value was observed for the question which asked as Yes/No question was Do you think pre determined percentage (Forced Distribution Method) for various performance categories are fair? This means that overall the respondents perceived fairness of current performance evaluation method as not in satisfied level. The highest mean value (04.84) was observed for the statement of perceived satisfaction of PM method has an impact on employee performance, which was questioned under the first independent variable that was employee satisfaction on employee performance. This means that if employees are satisfied with their performance management method naturally employee performance will increase. The same figure was received for the Yes/No question which asked as Do you think limited percentage for higher grade resultsin decrease in employee morale?

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It can be observed that there are very low standard deviations in the independent variables which mean that the dispersion of the responses is very low. When it is observed standard deviation figures calculated for the statements under independent variables, the highest standard deviation figure was 1.146 and it was for the statement number 10:I am satisfied with the current PM technique (performance grading) which is in use my organization. This means that the dispersion of the responses for that question is very high. The lowest standard deviation is 0.606; it was for the statement number 09. The statement is Employee satisfaction of OM method is important factor for motivation. It can be observed that there are very low standard deviations in this statement which means that the dispersion of the responses is very low. All variables show a moderate measure of means. The mean of employee performance is 3.48 and the standard deviation is 0.40 which signifies that overall organizational employee performance in the sample was at a minimum level. It can be observed that skewness values of variables are negative. The left tail is longer; the mass of the distribution is concentrated on the right of the figure. 4.1. Testing of Hypotheses

Hypothesis 1 is employee satisfaction of performance management method has an impact on employee performance. The correlation index is positive 0.257 between the employee satisfaction and employee performance. Therefore above data depicts that employee satisfaction is positively related to employee performance at a 0.01 significance level. Hence, hypothesis 1 is not rejected at a 0.01 level of significance. We accept the alternative hypothesis. Hence, higher the employee satisfaction, higher the employee performance. As alternative hypotheses accepted the null hypotheses, that is employee satisfaction of performance management method has no impact on employee performance is rejected. Hypothesis 2 is perceived fairness of performance management method has an impact on employee performance. The correlation index is positive 0.407 between the perceived fairness and employee performance. Therefore above data depicts that employee satisfaction is positively related to employee performance at a 0.01 significance level. Hence, hypothesis two is not rejected at s 0.01 level of significance. Therefore,
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we accept the hypothesis. Hence, higher the level of perceived fairness in performance management method, higher the employee performance. As alternative hypotheses accepted the null hypotheses that is,perceived fairness of performance management method has no impact on employee performance is rejected. Hypothesis 3 is Impact on employee morale through performance management method has an impact on employee performance. The correlation index is positive 0.584 between the employee morale and employee performance. Therefore above data depicts that employee satisfaction is positively related to employee performance at a 0.01 significance level. Hence, hypothesis three is not rejected at a 0.01 level of significance. Therefore, we accept the hypothesis. Hence, higher the level of employee morale on PM method, higher the employee performance. If employee morale increases on performance management method employee performance will increase. As alternative hypotheses accepted the null hypotheses that is,impact of employee morale from performance management method has no impact on employee performance is rejected. Multiple regression analysis was done by entering all the independent variables and the dependent variable. The results of the regression of the three independent variables against employee performance can be seen in the following table. Table 3: Model Summary
Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.632619 0.400207 0.36109 0.318092 50

This table lists the three independent variables that have been taken into account in the regression model. R(0.632) is the combined correlation of the three independent variables with the dependent variable. The R2 (0.400), which is the explained variance, is actually the square of the correlation. What this means is that 40% of the variance in employee performance has been significantly explained by the three independent variables considered in this study. This means that there can be many other factors that affect employee performance of Star-Tel (Pvt) Ltd.
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5.

DISCUSSION OF FINDINGS

The discussion of the findings will relate to the hypotheses formulated and the objectives of this study. The findings will be discussed by attempting to relate them to the theories and concepts that guided the researcher in formulating the conceptual framework. The findings of this study did not support all the hypotheses developed between the independent and dependent variables. The empirical results of this study highlight the importance of the impact of affective factors on employee performance. The alternative hypotheses on individual variables were accepted while the null hypotheses were rejected. However, employee satisfaction on performance management method, and perceived fairness of performance evaluation method showed weak correlations with employee performance. But employee morale on performance management method showed strong correlation with employee performance. Therefore, it is important that organizations consider this aspect seriously. Perceived fairness of performance evaluation method showed the second strongest correlation with employee performance in this research. If the employees perceive the evaluation criteria to be unfair, then such evaluation system would de-motivate the employees rather than motivate them. From the questionnaire it was identified as a serious issue that employees faced, and that higher performance grades are mostly given to employees in higher job levels. This highly influences the perceived fairness of evaluation method. As a result of this employees are not motivated to work. Also, less perceived fairness in performance evaluation method results in inter department inequalities, thereby causing reduced employee morale and teamwork in the departments. Employee satisfaction on performance management method showed the third correlation with employee performance. When evaluating the questionnairethe current need of performance appraisal meeting for the organization was identified. 99% of employees agree with the performance appraisal meeting. The research also found that employees are not satisfied with current performance appraisal method, and that they would be happy if the organization adopts a different performance appraisal method. This finding suggests that in the Star-Tel (Pvt.) Ltd performance evaluation method used, that is the forced distribution method, resultsin many problems and this should be given due consideration by the human resource management. The variables for
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this study were chosen based on the responses the researcher collected in the preliminary interview. Therefore some important variables may have been missed. Hence, future research should study the effect of other variables such as recognition, incentives, compensation, availability of procedural justice system, immediate supervision, etc. on employee performance. Since the reliability of some of the scales was low, these factors should be reconsidered for future research.

6.

CONCLUSIONS

The results of this study showed that employee performance of the Star-Tel (Pvt.) Ltd is not at a satisfied level. That means the current performance evaluation system of forced distribution method has many problems. Given the extremely competitive nature of the industry it is very important to maintain the competitive advantage of each organization in order to survive in the market. Competitive advantage of the organizations depends on the core competencies. Core competencies come from the employees. Therefore, it is very important for organizations to indentify employees strengths and weaknesses and according to that evaluate the employees. The study showed many areas where Star-Tel (Pvt.) Ltd should focus in order to enhance the quality of performance evaluation method of the organization. The findings showed that to promote organizational employee evaluation methods Star-Tel (Pvt.) Ltd should concentrate more on affective factors. Out of these factors supportive leadership to measure employee real performance, performance based culture, opportunities of career advancement, fairness of performance management and rewards system, and participation, are extremely important areas that the management should pay significant attention to.Therefore, Star-Tel (Pvt.) Ltd should develop measures in order to improve the above factors to improve the forced distribution method. As per the findings of this research, few other factors such as a pre determined percentage for various performance grade categories should be equalized, or for this pre determined percentage it also can replaced with identified percentages after recognized the number of employees categorized under any performance grade. Therefore, management should focus on these factors too.As per the findings the
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organizations should focus more on effective factors of employee performance. The next section provides specific recommendations according to the findings of this study.

7.

RECOMMENDATIONS

Recommendations are suggested based on the evidence gathered in the study of factors affecting employee performance. Perceived fairness of performance management system Organizations should take steps to ensure that the employees perceive the performance management and rewards system as a fair process. The performance evaluation criteria should be clearly defined for each grade of employees and the rewards either intrinsic or extrinsic should be defined in a similar manner. Percentage for performance grades should be decided after employee performance grades are given Instead of this pre determined percentage method, management can decide the performance grade percentage by considering the performance grades employees should be given. If managers can use more common sense in assigning ranking, and no longer strictly adhere to its pre determined percentage split employees will be motivate to work, and many problems will be solved. Performance appraisal meeting Most employees expect performance appraisal meeting in employee point of view. They need clear clarification with their performance grade. This will resultin employees improving on their weaknesses by getting necessary training, and this also helps reduce inter department inequalities with peers though they receive different performance grades. Instead of forced distribution method management by objective appraisal method can be used MOB requires the managers to set specific measurable goals with each employee and then periodically discuss the latters progress toward these goals. Management can engage in a modest and informal MOB program with subordinates by jointly setting
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goals and periodically providing feedback.Management can consider this approach to develop the performance appraisal method of the Star-Tel (Pvt.) Ltd. Opportunity for career advancement Most of the company employees receivedthe same performance grade for the last three years and as a result employees de-motivated because they did not get any opportunity for career advancement. So the organization should realize this and should formulate human resource policies to have career advancement mechanisms. Participation Management should involve and get the ideas of the employees as much as possible from the relevant employees when making employee performance. At least management should explain the decisions regarding performance grade they wish you to obtain. Supportive leadership It needs to be ensured that organizations create an atmosphere where employees perceive that the leadership is supportive of them.

REFERENCES Ahmed, S. (1999). The Emerging Effectiveness for Human Resource Management: An Exploratory Study with Performance Appraisal. The Journal ofManagement Development. 18, 6, 543-556. Barrier, M. (1998). Reviewing the Annual Review. Nations Business, 86, 9, 32. Bartol, K. M., Durham, C. C. and Poon, J. M. (2001). Influence of Performance Evaluation Rating Segmentation on Motivation and Fairness Perceptions. Journal Of Applied Psychology, 86, 6, 1106-1119. Boswell, W. R. and Boudreau, J. W. (2000). Employee Satisfaction with Performance Appraisal And Appraisers: The Role Of Perceived Appraisal Use. Human Resource Development Quarterly, 11, 3, 283-299

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Cleveland, J.N. and Murphy, K.R. (1992). Analyzing Performance Appraisal as a Goal-Directed Behavior. Research in Personnel and Human Resources Management, 10, 121-185. Davis, B. L and Mount, M. C. (1984). Design and Use of Performance Appraisal Feedback Systems. Personnel Administration, 3, 91-107. Eager, W.G. (1991). Relationship between Organizational Culture and the Performance Appraisal Process. An unpublished dissertation. Pennsylvania State University/ Ford, J. K., Kraiger, K. and Schetman, S.L. (1986). Study of Rare Effects in Objective Indices and Subjective Evaluation of Performance: A Meta-analysis of Performance Criteria. Psychological Bulletin, 99, 330-337. Gary Dessler (2008) Human Resource Management Eleventh Edition , Performance Management PP-336-348 Gosselin, A., Werner, J.M., Halle, N. (1997). Ratee Preferences Concerning Performance Management and Appraisal. HRD Quarterly, 8, 4, 315 333. Karol, S.H., (1996). The Influence of Planning Activity on Employee Performance Review. Unpublished Dissertation, Evanston, IL. Latham, G. P., and Wexley, K. N. (1981). Increasing Productivity through Performance Appraisal. Reading, MA: Addison-Wesley. Michael Armstrong (2003) Performance Management- Key Strategies and practical guidelines Smither, J. W. and Reilly, R.R. (1987). True Intercorrelation among Job Components, Time Delay in Rating and Rater Intelligence as Determinants of Accuracy in Performance Ratings. Organizational Behavior and Human Decision Processes. 40:369-391. Taylor, M.S. Tracy, K. B., Renard, M.K., Harrison, J.K., and Carrol, S(1995). Due Process in Performance Appraisal: 40, 495 - 523.

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A COMPARATIVE STUDY OF TRADITIONAL AND NONTRADITIONAL MOTIVATIONAL METHODS IN BANKS

R.S.P.N.Gunawardhana prabani.nilangika@yahoo.com

ABSTRACT: Reward management is one of the integral parts of the whole management process in organisations. Within reward management there are thousands of ways to reward employees. One employer is not supposed to follow all types of reward methods. Managers should therefore be knowledgeable enough to identify the most suitable set of reward systems within their own business context. This is a challenge for most human resource practitioners as innovative and creative formulation of strategies help keep companies at the cutting edge of the market. That in turn makes the organisation the employer of choice. The ways and means of rewarding employees are thought to be decided in accordance with the economy of the organisation, organisational culture, attitudes of the employees, type of the products or services, the market dealt with, industry standards and many more factors. All these variables have to be scrutinised in order to determine the best-suited set of rewards in a particular organisation. This research aims to investigate a small area out of this broad context. It is an exploration of attitudes of human beings employed in banks towards traditional and non-traditional rewards. The principle idea was to identify the type of reward, traditional or non-traditional, that perpetuates employee motivation,especially in the banking industry. Findings from the research may be of interest for human resources strategy formulation by practitioners in the banking sector. Primary research was carried out in two banks in Kurunegala District. This research was primarily based on raw data directly
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collected from relevant fields conducting a questionnaire survey. Secondary data were utilised to frame major findings. Survey results revealed three interesting findings. Every banker subjected to the study was fully satisfied with their present job. Secondly, non-traditional motivational methods are more effective than traditional rewards on retention of employees in banks. Finally, non-traditional rewards have the most effect on retention of employees satisfaction than traditional rewards in the same sector. Key words: Reward management,employee motivation

1.

INTRODUCTION

The Central Bank of Sri Lanka, which started operations in 1950, stood at the apex of the countrys financial framework in 1988. In many ways the Sri Lankan banking industry has changed more in recent decades than ever before, due to the introduction of new technology, rapid development of communication methods, introduction of innovative products, globalization and so on. This scenario let banks compete with each other. The maintaining of a co-competent staff is one of the measures taken by managements in order to provide a high quality service.So this study will be carried out to identify most effective motivation method traditional or non-traditional used by the private and public bank in order to motivate their employees for better output

2.

LITERATURE REVIEW

Motivation is one of the earliest concerns of the organisational behaviour. Links between a motivated work force and increased performance (often assumed and with surprisingly little empirical support) led managers to strive toward motivating their workforces in an attempt to reduce alienation (Robert et al., 1999).

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Figure 1: The Basis of Motivational Theories

Needs Generates

Increases

Motives Managers

Individual

Rewards

Motivating / De-motivating

Job satisfaction

Increase/ Decrease

Figure 2:Maslows Hierarchy of Needs

Self-Actualization

Challenge, Creativity, Opportunity and Achievement Recognition, Responsibility and Importance

Esteem

Social

Friendly Colleagues Safety at Work, Benefits and Job Security Physical Comfort, Pay and Basic Working Conditions

Safety

Physiological

Source: Robert et al (2003)

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McClellands Motivational Theory McClellands acquired needs theory focused on the needs similar to the higher order needs identified by Maslow. Specifically, McClelland argued that an individual has needs for, 1. Achievement (nAch) 2. Affiliation(nAff) 3. Power (nPow) Herzbergs Motivation-Hygiene Theory: There are two types of motivators, one type which results in satisfaction with the job (called motivators) and the other one which merely prevents dissatisfaction (called hygiene factors). These two types of factors are quite separate and distinct from each other. The factors that lead to job satisfaction (motives) are:

Achievement Recognition
The factors which prevent dissatisfaction (hygiene) are:

Company policy and administration Supervision

(Thorpe and Homan, 2000) Adams Equity Theory: Equity Theory on Job Motivation As Adam (1963) stated, We each seek a fair balance between what we put into our job and what we get out of it. Adam calls these inputs and outputs. We form perceptions of what constitutes a fair balance or trade-off of inputs and outputs by comparing our own situation with other referents (reference points or examples) in the market place. We are also influenced by colleagues, friends and partners in establishing these benchmarks and our own responses to them in relation to our own ratio of inputs to outputs.

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3.

RESULTS AND FINDINGS

Profile of the Respondents and Banks This research was carried out in two branches in of Bank Of Ceylon and Sampath Bank in Kurunegala district. Building societies were not considered as banks in this study. The following table shows banks and their population figures Table1: Populations of Two Banks No 01 Bank Sampath Bank Branch Kuliyapitiya Narammala Giriulla 02 Bank Of Ceylon Kuliyapitiya Narammala Giriulla Figure 3:Population of Two Banks Population 30 28 32 33 26 29 Sample 5 5 5 5 5 5

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There was no much difference in populations in each branch. Therefore, the same size of sample was considered in each. When differentiated into gender, it was found that 42 percent of respondents were female and 58 percent were male. The expected ratio was 50:50 but due to practical difficulties, the expected values could not be attained. Along with research objectives, data obtained from the sample were used for two purposes: analytical and descriptive study. In order to achieve the basic specific objectives, descriptive analysis was carried out describing rewards in the banking industry. This data did not go through any analytical procedure and fresh data was directly utilised as information for the description. Different rewards being used in this industry are outlined below. Different Ways of Rewarding in Banks One of the aims of this research was to identify the various types of rewards available or used by managements in the banking sector. According to primary and secondary data sources, almost all the banks tend to use the same set of rewards while few banks use innovative benefit packages for their employees. It was an obvious fact that, managements of all banks seem prioritised towards financial rewards. But the interesting fact was that, attention towards innovative non-traditional employee benefits is becoming popular among employers in most modern large scale banks. Different types of rewards employed by banks found through data survey are briefly outlined under the following subtopics: Financial Rewards

Salary Online recruitment web sites revealed that salary scales on all the banks exist at a good standard compare to other industries. Salaries are highly competitive, innovative and flexible.

Pension Schemes Some top level banks still offer pension schemes even for new recruitments. Specialty goes to private banks like Sampath Bank. All employees are entitled to the pension and the amount depends on the final salary and the length of the service.

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Share Ownership Employees are allowed to buy company shares and end of each financial year or every six months they are awarded with annual or biannual dividends.

Performance Bonus / Incentive Scheme Individuals are rewarded for their achievements against targets, which are set at personal, group or business level. Allowances- For many activities which are considered to be an extra additional work or if need extra effort, additional cash allowances are payable. Preferential Rates and Discounts These discounts are not only for the own banks financial products but also with a broad selection of retailers and leisure providers.

Low Cost or Interest Free Loans Employees are provided with low cost or sometimes interest free loans, depending on the amount and the purpose of the loan. E.g., Interest free loans are granted for holiday travels.

Sponsorships Sponsorships are available for employees who meet relevant requirements for such events. E.g., Employees who are eligible to follow an MBA degree can request a full sponsorship for the tuition fee.

Life Assurance Some banks offer a life assurance benefits which provide highly lucrative lumpsum payments for beneficiaries whenever an emergency occurs.

Flex Benefits Allows employees to adjust the balance of the benefits according to needs. E.g.: buy childcare vouchers at a discounted rate. Reward Vouchers Gift vouchersare common rewards system in many banks in many occasions whenever employees achieve targets or perform well in some assignment. E.g. Bottles of Champagne, Travel Tickets and so on.

Commission Free Currency Currency can be exchanged at commission free basis.

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Non-Financial Rewards

Recognition - A special favours for extra effort by individuals. Employees are entitled to be rewarded for extra performance. Training and Development There are various types of training sessions in banks, with the aim of enhancing individual and organisational development. Each bank tends to offer a wide range of learning and development opportunities, where an employee can choose any subject area which best support their career and future prospects.

Scholarships Even though scholarships can be categorised under financial and training benefits, it should be specially mentioned as it is a kind of highly popularised reward systems among employees

Souvenirs / Yearend Gifts In some banks, employees are rewarded with souvenirs or gifts for their outstanding performance. Encourages Customers Feedback Customers are encouraged to share their feedback on the service they enjoy. Feedbacks are expected to be issued via letters, phone calls or emails etc.

Certificates Some good performances are rewarded with certificates. This ensures personal recognition and prestige. These certificates themselves will be stepping stones for employees future progress in the same organisation or for any other job opportunity.

Family Health Cover Employees are entitled to claim any cost incurred for their health problems. This benefit is an entitlement for employees beneficiaries too, regardless of number of members dependent on him/her.

Prestige Most of the employees prefer to work in a bank, as they enjoy the prestige of being a banker in a well reputed bank in the country. Colleague products - Banks offer their own products with highly discounted rates for their employees. E.g.: BOC provides its mortgages and savings to its employees with extravagant discounts.

Social Events -Most departments organise social events, ranging from informal drinks to full-scale formal events
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After addressing basic specific objectives, the main focus of the research were investigated through the analytical research. For this, data were analysed using correlation analysis. Table 2: Results of the Correlation Analysis
Dependent Variable Independent Variable Gender Motivation (Reward Type) Civil Status Experience Correlation Value 0.168 0.142 0.174 P Value 0.032 0.369 0.017

As shown in table 4.2 except for one independent variable other two variables have significant association with the reward type. All variables have positive association with the reward type. According to this civil status has minimum association or zero association with the reward type. Other two variables have strong relationships with the reward type. Out of that work experience has strongest relationship with the reward type. The following figure illustrates the same results graphically for a better understanding. In this graph, the gap between reward types in the male population is far bigger than that of female population. But preference for the non-financial benefits is higher in both male and female populations. Figure 4:Rewards V. Gender

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Many bankers, those who prefer non-financial rewards, stated that their expectations from the job, is far broader than financial desires. Some of the senior male employees, for example, are motivated by rewards like recognition, a pleasant working environment, and promotions such as intangible rewards rather than direct financial rewards. Prestige is one of the other popular reward types among both male and female populations as they revealed in the interview. Conversely, more and more financial rewards are the only requirement for most of the other employees, those who prefer financial rewards. They stated that, they would get whatever they want through a good income. Apart from gender, different ideas of married and unmarried employees were measured against rewards type. These variables did not show significant differences as above. The following graph represents results of the analysis, though it has not contributed much to the shape of the study. Figure 5:Relationship between Civil Status and Type of Rewards

The majority of the married population, fifty four percent, prefer non-financial rewards while nearly a same amount prefers financial rewards. The gap between contradictory ideas seems less. As far as the unmarried population is concern, the situation is same but vice versa. However, a reasonable association between these two variables could not be found in the analysis.

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Once respondents were differentiated in order of their age, results seemed better. There was an association between age category and reward type. Most of the young employees preferred financial to non-financial rewards. When moving on to more mature employees, it turned out to be other way around. As young employees explained in the interview, reasons for wanting financial benefits are that they need to reach high living standard as early as possible. For an example, to be an owner of a car, to buy a house, clothes, and so on. Most of them do not bother about prestige or recognition. At the same time, other young employees explained it in a different way. They appreciate training, certificates, experience, promotions rather than bonuses and other direct financial rewards and stated that these rewards will be stepping stones for their future careers. As illustrated in the following graph, the majority of employees under thirty prefer financial rewards. When it comes to middle age, the preference gap for non-financial and financial rewards becomes lesser. Further, most of the employees who passed their forties would be happier with non-financial rewards rather than financial rewards. Figure 6: Association between Age and Reward Types

This graph shows a positive trend in terms of age v. non-financial rewards and negative trend in terms of age v. financial rewards. This above analysis revealed an important fact in which respondents, who possess more experience, provide information with different directions compared to responses from less experienced employees. The same analysis was expanded below to strengthen the validity of the relationship.
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The following figure shows the difference between various ideas of employees in different categories of work experience. Employees, who have been working in the bank for more than five years, are more likely to have non-financial rewards than financial rewards while employees who are new to the bank prefer financial rewards. It clearly shows how employees change their attitudes towards benefits with the duration they spend in the bank. Figure 7: Type of Rewards v. Years of Service

Respondents were later categorised into two categories based on the experience gained in their present career. The main objective was to survey employees who have been working in the bank for a long time, numerically more than five years (long stay employees-LSE). It was an intention to compare effectiveness of reward types, financial and non-financial, on retention of employees satisfaction by measuring employees attitudes based on long-term and short term experience. Therefore, the majority of the sample elements were selected among long stay employees while a minority were taken from short stay employees (SSE) who had less than five yearsof experience.

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Table 3: Relationship between Type of Rewards and Working Duration

Type of Rewards Working Duration Long Stay Emp(LSE) Short Stay Emp(SSE) Non Financial Rewards 81% 33% Financial Rewards 19% 66%

Referring to the above table, 81% of LSEs are satisfied with non-financial rewards rather than financial rewards. The rest of the most senior employees argued the other way around. At the same time, majority of employees, who have been working for the organisation for short period of time, provided contradictory remarks. These employees are fully satisfied with their present job but majority of them prefer financial rewards to non-financial. 66% of SSEs argued that they need more financial rewards and they are less interested in non-financial rewards. The majority, those who prefer non-financial rewards, expressed that more money doesnt play a big role in their goals. They want to climb up to a higher rank in the hierarchy; hence they need appreciation, recognition and good reputation from their bosses to whom they report. In addition, training, experience, good relationship with the management, is their preference. Having further investigated the reasons for these preferences, it was found that these employees like to handle leaderships in their own organisations and some of them try to become a part of decision makers in the management. Others valued social recognition as an achievement. The employees who preferred financial rewards also preferred some of the above but they tend to vote for more money because their priority is to have a high income. In spite of that, every employee appreciated a pleasant working environment and good relationship with fellow workers and their clients. The following illustration will help enhance the understanding of above findings. Figure 4.6 clearly shows the difference between the preferences of the more experienced and less experienced staff members. Forty eight percent of senior staff members prefer non-financial rewards than junior staff members, as the gap indicates under the non-financial column. At the same time forty seven percent of SSEs prefer financial rewards than LSEs, as per the indicated figures under the financial column.
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Figure 8: Types of Rewards v. Employee Experience

The graph below illustrates the way employees were rewarded during their career. Figure 9: The Way Employees are Rewarded During the Job

Most of the LSEs have been rewarded with non-financial rewards than financial rewards while SSEs have experienced things the other way around. Fifty eight percent of long-stay employees were awarded with more non financial rewards than financial rewards. Meanwhile, short-stay employees have mostly (60%) been awarded with financial rewards. Senior staff members usually get more opportunities to enjoy
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company benefits than junior members as their working duration is longer. For instance, a senior staff member would get two or three promotions while a newcomer would enjoy only one promotion.

4.

CONCLUSION

A general overview of types of employee rewards being implemented in the banking sector and possible differentiation of identified rewards into non-financial and financial rewards, were two basic and initial focuses of this study. These findings were mostly backed by a secondary data survey rather primary survey. Results evidenced that variability of non-financial benefits are higher than financial benefits. It was an obvious fact that, larger and more powerful players in the industry have brought up innovative and competitive rewards systems, helping to keep them at the cutting edge of the employee market. Therefore, they usually possess the advantage of recruiting and attracting co-competencies in the pool of employees. However, financial benefits are the most widely used reward system in all banks. As far as ideas of higher rankers are concern, it is an obvious fact that most employers are still in the traditional framework when taking decisions on reward management. Employers always try to motivate their employees mostly with financial benefits, and non-financial benefits are always given secondary priority. In general, all employees acknowledged that they are satisfied with their present employee either due to non-financial or financial rewards. Recalling theories, Maslows and Herzbergs, employees are motivated when they are satisfied with their physiological, safety, social and esteem needs. Studying the benefits given by various banks, it was realized that these benefits managed to cover most of the employee requirements in order to satisfy needs as theories indicated. According to the figures in table 4.3, eighty one percent of LSEs prefer non-financial rewards to financial rewards. A minority (only nineteen percent) of same employees prefer financial rewards and there is a significant difference between them. This gap adds an important fact to the argument. Synchronizing these two findings, it can be concluded that, there is a relationship between non-financial rewards and long term stay in the same organisation.
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Interpretation of figure 4.9 provides additional evidence strengthening this argument. It depicts that, throughout their career, LSEs have been rewarded with non-financial rewards rather than financial rewards. They were rewarded the way they wanted to be rewarded. With all these facts, it is reasonable to come to a point where the majority of long stay employees have been retained in the bank for long, as they were rewarded mostly with non-financial rewards. Employees being satisfied with their requirements may stay in the same organisation as long as they are satisfied with the rewards granted. Employees who have not received their requirements may leave the organisation and they may not be able to work long durations at the same place. Employees who possess less experience are not able to differentiate between the influences caused by the two types of rewards in the long run because of the time factor. Employees who have ability to predict the future would sometimes provide realistic feedback. But in general, it is hard to decide their desire without experiencing it. New employees were rewarded both financial and non-financial rewards (refer figure 4.9), but they are supposed to enjoy them in the long run in order to identify the types of rewards that keep them motivated for long periods. Employees who have long-term experience can, therefore, have a better understanding of the differences of influence of reward types on employee satisfaction. Considering above three arguments, 1) there is an association between work duration and reward types 2) eighty one percent (81%) of LSEs prefer non-financial rewards and 3) majority of long stay employees who have remained in the bank were mostly non-financially rewarded, it can be concluded that non-financial rewards contribute more than financial rewards towards retention of employees in banks. Expanding on the same discussion to address the last objective of the study, it was an obvious fact that, all the respondents agreed that they are satisfied with their current job regardless of working duration. Nobody seemed to be frustrated with their current employer and everybody seemed to be happy with either non-financial or financial rewards. Meanwhile most of the LSEs (81%) have acknowledged that they are satisfied mostly with non-financial rewards and they were treated mostly the same throughout their career. These two findings lead to further conclusions. Senior staff members have long been satisfied with their current employer, and they have been working for the same organisation more than five years because most often they were
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rewarded non-financially rather than with financial benefits. Final conclusions can be drawn on this ground. The final and main objective of the research was to compare the effectiveness of two types of motivational methods in banking sector. Based on above logic, it can be concluded that, non-financial rewards rather than financial rewards have more of an influence on the retention of employees in the banking sector. Based on long term experience and attitudes of the employees, it was found that the effect of non-financial rewards is long lasting. Conversely, financial benefits, though seemingly attractive at a first glance, do not help much to make employees motivated for a long time. Therefore, it can also be concluded that, even though financial benefits are common and popular among employers, their effectiveness is not long lasting. Apart from its demand from the employees side, employers tend to design reward packages prioritising financial benefits. The outcome of this research has proven that this traditional system of reward management does not make sense for future endeavours of human resources strategies in banks. Some radical solutions, those that have been found during the survey, are mentioned under recommendations.

5.

RECOMMENDATIONS

After reviewing of the whole research, a few recommendations have been made that would improve the overall system of reward management in the banking sector. These recommendations are based upon the findings of the research carried out, and can be strategically implemented in the banking sector and in its working environment. Each recommendation is considered in terms of what it is, how it would be implemented, why it is necessary and any additional factors to be considered. It has been suggested that, managers should pay more attention to non-financial rewards in human resource strategy formulation than their existing strategies. Even though there are plenty of non-financial rewards systems introduced by some market giants in this industry, their implementations seem to be biased towards financial rewards. Human resource management practitioners in the banking sector seem not to pay much attention to radical rewards methods. Lack of communication among academics, literature and practitioners keeps managers away from awareness of advantages of non-traditional rewards.
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Before planning human resource strategies, it is one of the main responsibilities to identify the culture of the organisation, attitudes of employees, their most wanted requirements, desires and so on. The scale they used to design human resource strategies must be unique to the organisation and they should deviate from traditional and common frame work of designing employee rewards strategies. For instance, yearend employee performance appraisal can be used to get employees most valuable information and that information can then be used for strategy formulation. Careful planning and non-traditional ways of implementing employee reward strategies may result in significant changes in the organisations endeavours towards its success. Employee retention is one of the crucial factors that need to be considered. When an employee gains an experience and they get used to the own organisational culture, he/she becomes an asset to the particular organisation. Therefore, such an employees resignation may probably be a big loss to the organisation. Employee retention is an important fact to be considered, along with human resource strategy formulation. Customers always like to deal with knowledgeable, skilful, well experienced employees because it helps save their time money and time. Especially in the banking sector, customers expect high quality service due to highly competitive market in the industry. It is, therefore, managements responsibility to maintain an excellent staff, if they really want to survive in this modern and dynamic business environment. It was found that most of the innovations introduced by academics have not trickled down to practitioners or they are less aware about them. It was also an obvious fact that coordination between academics and practitioners is less and this barrier hinders the flow of theories or innovations to the real practical world. Therefore, awareness about human resources theories, findings of new researches and state-of-the-art strategic knowledge among personnel practitioners are controversial. Moreover, exploring relevant literature for the research, it was found that the literature on employee motivation, particularly in the banking sector, is insufficient. So it is important to conduct further empirical studies in this discipline. The following section points out some of non-traditional reward methods found through literature surfing and primary data collection. These reward systems were introduced by some of the outstanding performers in the market, and they seem extremely uncommon.
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Benefits choice programme is one of the attractive rewards systems. In this system, an employee has a choice on their spending. An employee can pick and choose benefits and other extras which suit him/her as an individual. This means employee can choose to spend their salary on a wide range of options including health care and insurance at low group rates, discounted childcare vouchers, additional holidays, a personal computer, discounted wine and lots more. So that when an employees life takes a different turn, rewards can be adopted too.

Staff in an organisation is a sub society. Elements in this society are human beings. They are not other objects of production process as considered in Taylors era. Therefore, employees grievances should be considered as a one of the most important responsibilities of human resource department. It has been evidenced in some banks that they provide a sound counselling service for their employees. They provide free and confidential advice service to all their employees covering areas such as child care, relationship, legal matters, eldercare, work and stress.

It is also important to recognise that individual and group success requires individuals to continue to develop themselves. In support of this, some groups offer a wide range of learning and development opportunities. In this sense, if an organisation owns its own learning and education network, acting as a onestop-shop to provide training for staff, Human Resource Department will be able to deliver various courses online via intranet, and also provide access to and co-ordinate online training, online assessments and supporting tools. This network can be designed to support employees in technical, personal and managerial aspects.

Car parking is one of the integral problems that make most employees frustrated.Prearranged parking facilities enable employees to park their vehicles safely without delay. It subsequently ensures punctuality and better concentration on their day to day work.

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REFERENCES Armstrong M. (2000) Employee Reward, London: CIPD House. Armstrong M. and Murlis H. (1994) Reward Management, London: Kogan Page Ltd. Armstrong M. (2000) Employee Reward, London: CIPD House. Bach S. and Sission K. (2000) Personnel Management, Oxford: Blackwell Publishers Limited. Bell J. (1995) Doing Your Research Project: Open University Press. Blaxter L., Hughes C. and Tight M. (1996) How to research: Open University Press. Gross, Steven E., Haberman and Susan (2002)Total Compensation in a Recession: HR Priorities Shift According to New Survey Analysis, Employee Benefit Journal, 27:1, 3-3 Hume D. (1995) Reward Management, Massachusetts: Blackwell Publishes. Hussey J. and Hussey R. (1997) Business Research, London: MacMillan Press Ltd. Oppenheim A. N. (1992) Questionnaire Design, Interviewing and Attitude Measurement, London: Pinter. Riley M., Wood R., Clark M., Wilkie E. and Szivas E. (2000) Researching and WritingDissertations in Business and Management, Surrey: Thomson Learning. Rudestam K.E. and Newton R.R. (1992) Surviving Your Dissertation: Sage Publications Inc. Sanders M., Lewis P. and Thornhill A. (2000) Research Methods for Business Students, Essex: Pearson Education Limited http://search.epnet.com/direct.asp? an=10613746&db=buh http://www.tees.ac.uk/depts/lis/ejournals/display_new.cfm http://www.businessballs.com/adamsequitytheory.htm http://sbinformation.about.com/cs/benefits/a/8uncommon.htm http://www.isrsurveys.com/en/pdf/media/financialpressrel http://www.joe.org/joe/1998june/rb3.html
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http://search.epnet.com/direct.asp? an=10613746&db=buh http://www.tees.ac.uk/depts/lis/ejournals/display_new.cfm http://www.businessballs.com/adamsequitytheory.htm http://www.natwest.co.uk/ http://www.halifax.co.uk/home/index.shtm http://www.hsbc.co.uk/ http://courses.ncssm.edu/math/Stat_Inst/PDFS/Categorical%20Data%20Analysis.pdf

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IMPROVING PERFORMANCE OF THE EMPLOYEES THROUGH AN EFFECTIVE PEFORMANCE EVALUVATION

Ramanusha Poopalaratnam Ramanusha2@yahoo.com

ABSTRACT The research project is conducted to study the relationship between the effective performance evaluation and employee performance. The objectives of the research projects are (i) find out the relationship between Performance evaluation and employee performance, (ii) to gain theoretical knowledge in performance evaluation, (iii) to find out the factors that contribute towards ineffective performance evaluation, and(iv)to investigate the problem and the solution though survey and recommend steps. Performance Evaluation is one of the key tools for any type of organization which operate in the current dynamic environment of the world. It became one of the crucial strategic means in order to survive and compete for the organization in all sectors. This study was conducted in an organizations comes under the NGO sector.NGOs are established to meet social and economic needs and to fill the gaps in society by addressing the concerns of the disadvantaged and less privileged. Therefore, this study intended to focuses on how an organization in the NGO sector improves employee performance through elaborative and systematic performance evaluation process in qualitative and quantitative means. In addition, this study will provide guidance to carryout future research studies in similar related NGOs. This is a single-case case study, where the entire organization constitutes the case study. The sample size from within the case consisted of the entire current staff .The sources for primary data collection was derived through questionnaires, group interviews and telephone interviews. The sources for secondary data collection were derived from annual reports of the organization, publications and media release of the organization and website of the organization.
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The research explored the satisfaction level of employees of the organization regarding the current performance evaluation system of the organization. It also intended to find out how performance evaluation is linked with other strategic means to achieve organizational goals. The research intended to explore how the performance evaluation systems of the organization affected the performance of the employees. The effectiveness of the performance evaluation was also examined in this research. With the results from the survey and the comments from the employees, it was concluded that effective performance evaluation will improve employee performance. Recommendations are suggested for this particular organization to conduct effective performance evaluation in order to improve employee performance. Key words: Employee performance, performance evaluation

1.

INTRODUCTION

Organizations in the current global environment need to strategically use its resources, including human resources, inorder to gain a competitive advantage. The success and the sustainability of the organization are often depended on its employees performance. Employees are the life blood of an organization, and their collective attitude can greatly affect the direction and objective of any organizations. Employee performance contributes to improve the outcomes of the organization and ultimately in achieving organizational objectives. Employee job performance is an important issue for all organizations (Mathis and Jackson, 2000). The behaviours and the outcomes of the employees should be evaluated systematically for purposes of managing and developing employees. Therefore, implementing an effective performance evaluation system is one of the strategic solutions to drive a high performance culture in the organization so that organizational goals are reached. It helps to improve the productivity of the organization. Performance appraisals on employees need to be conducted regularly in order to improve the work of individuals and teams employees in qualitative and quantitative means. It has a plethora of benefits and potentials to improve the performance of the employees of the organization. They are employee satisfaction, commitment, involvement, motivation, high performance culture, reduction of the level of employee conflicts, and quality of work.Performance evaluation serves many purposes and ineffective performance
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evaluation will result in employee frustrations, chaos, apathy, high turnover,and even in lawsuits. The organization of this research is one of the most important peace NGOs in Sri Lanka. Also, one of the largest in the peace sector engaged in various different work areas. The organization has experience of working with peace for more than fifteen years and it has been active in several areas. This study intends to focus on the potential use of effective performance systems and to explore the ways to create the most appropriate performance evaluation systems for an organization in the NGO sector. The particular organization in this research is facing issues of employee turnover, poor employee relations and donor pressures. The practice of performance evaluation in this organization is not conducted regularly and not strategically connected to organizational goals. Therefore, this study focuses on issues of ineffective performance evaluation and how the performance evaluation system can be created to solve issues and to improve the performance of the employees. Presentation of findings Identifying the problem
Statements Strongly agree Agree Neutral Disagree Strongly disagree

Presence of regular PE process Identification of T &D needs through PE Satisfaction of rating method Performance based rewards Recognition for performance PE and Bias Constructive feedback Clear goals for PE period Ineffective PE and employee performance

1 0 0 0 0 0 0 0 3

3 2 2 3 4 3 4 6 11

3 3 7 4 4 5 4 2 2

7 10 7 8 6 8 8 9 2

4 3 2 3 4 2 2 1 0

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Statements

Lack of Lack of Poor Absence of Poor leadership Knowledge communic- regular PE relationship and skills ation between of management management and employees

The reasons for the gap in standard performance and actual performance

Statements

Employee Poor Unfinished Employee Employee Dissatisfa- employee projects grievances turn over ction performance

Potential problems of poor performance

Solution
Statements Strongly agree Agree Neutral Disagree Strongly disagree

Motivation from management for high performance PE as a practical solution for NGOs
Statements

6 7

10 8

2 3

0 0

0 0

Mutually T& D Performance Constructive Guidance agreed opportunities based feed back and support goals rewards

Improvement of employee performance depends on

Statements

High Employee Achievement Increase in Employee performance satisfaction of goals productivity commitment culture

Benefits of PE

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Statements

Mutually Constructive Performance Two way Other based communic ( T& D agreed feed back rewards ation identification goals through PE)

Recommendation for new PE

Statements

Employee Poor Unfinished Employee Employee Dissatisf- employee projects grievances turn over action performance

Potential problems of poor performance

Statements

Reward Training Grievance Employee Recruitment management and management relations development

The areas can be improved as a result of effective PE

Statements

Open and transparency

Fairness

Career Fair reward Recruitment development practice

The changes expected from management

2.

LITRERATURE REVIEW

What is Performance Evaluation? Performance evaluation is a systematic process of collecting evidence of employees to evaluate their job performance against the predetermined performance standards in a certain time period with the intention of using information for various managerial decision making and development of employees.
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Performance Evaluation In Non-government Organization Performance evaluation is not a popular practice in NGOs. Evaluating the performance of the employees of non-government organizations is always a complex activity. Limitations of the instruments that NGOs use to monitor, evaluate and review are one reason why NGOs have not been able to substantiate their achievements (Fowler, 1997) While, NGOs are struggling to measure their overall performance of the organization, evaluating the performance of their staff is indeed a challenge for them. It is believed that people of NGOs are motivated altruistically. The employees are enthusiastic with their work and they are motivated by the work itself. But, still as corporate sectors NGOs also should have employee performance evaluations systems in policy and practice. Even though the success of the non-government organization is not defined by the profits, still they are questioned by the donors, individuals, communities and governments, on what are their outcomes and impact are by interventions. Therefore, there is a need for NGOs to implement effective performance evaluations for their employees without contradicting with its values norms and culture. NGOs sustainability is also based on its performance. Employees of the non-government organizations should be directed towards the organizational goals. There is another issue that arises is that the needs for training and development for staff cannot be identified unless there is a better performance evaluations in the organization. Even though NGOs are weak at staff performance evaluations there is necessity for the NGOs to adopt performance evaluation techniques like other sectors in the contemporary world. Purposes of Performance Evaluation Organizations practice performance evaluations for various purposes. The main purpose of the performance evaluation process is to contribute to the improvement of the performance of the employees to achieve organizational objectives. Following are the multiple purposes of performance evaluation: (a) Administrative purposes of performance evaluation

To contribute to human power planning and selection

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(b)

To use PE to link employee performance to financial rewards or other types of benefits To use for management decisions on promotions, termination and transfers. To provide challenging work such as job enrichment To use for disciplinary actions To maintain harmonious employee relations To provide an opportunity to communicate performance expectations to employees To identify poor performers or under performers To update documentation for HR decisions To help to meet legal requirements

Development purposes

(C)

To identify the training needs To measure the success of trainings To assess and develop individual abilities To provide an objective basis to base decisions on To plan for career development To achieve career progression To link organizational success to employee To guide employee towards appropriate direction

Communication purposes

To communicate the organizational goals to employees and employees expectations from the organization. To recognize and acknowledge greatest performance To help employees to get prepared for future promotions
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To help employees for role clarification of the job To provide constructive feedback to the individual regarding how their performance is seen

Performance Evaluation Process PE functions as a process in an organization to achieve its goals. Following steps are to be taken systematically to conduct a successful operation of PE: Establish objectives of PE Formulate policies Establish criteria and standards Select methods of PE Design evaluation form and procedure Train evaluators Appraise Discuss PE results Make decisions and store Review and renewal

Establish objectives of PE Objectives are favourable targets to be achieved in during a particular period. Objectives are agreed by the employee and supervisor for the PE period. The objectives should be specific, measurable, attainable, and clear and time bound.
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Formulate policies of PE The organization should formulate its PE polices based on following issues: 1. 2. 3. 4. On whom should PE be done? When should PE be done? Who should do PE? How often should PE be done?

Establish criteria and standards of PE Criteria refer to factors that are used to evaluate job performance of employees for certain period of time. The inputs for the criteria can be derived from job analysis. The dimensions of traits, behaviours and outcomes are keys to establishing criteria and standards. Standards should be determined after deciding PE criteria. Performance evaluation standards indicate rating scales. These scales should be developed systematically and fairly (Opatha, 2003). The standards should be designed in a way to challenge employees,and at the same time being realistic. Also the standards should be observable and measurable and time frame should be specified. Select methods of PE PE methods are the techniques which are used to evaluate the performance of the employees. There are various PE methods available today. An organization should decide a suitable PE method to evaluate the performance of the employee by considering several factors such as nature of job, purpose of evaluation available resources, and number of employees (Opatha, 2002). Following are some popular PE methods:

Graphic rating scale Checklist method Critical incident method

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Performance ranking method Paired comparison method Self evaluation and discussion method Point allocation method Field review method Management by objective Behaviourally anchored rating scale 360 0 Degree feedback

Design evaluation form and procedure After the selection of PE methods PE form and procedure should be designed. The form comprises of evaluation methods, criteria and standards, to assess the quality of the job performance of the employee. Training of evaluators Training of evaluators refers to a systematic attempt to improve related knowledge and skills of the evaluators evaluating job performance of employee. Following methods can be used in the evaluators training:

Lectures Case study method Role play Programmed instruction Special course of PE

PE discussion The results of the PE should be discussed with the employees after the evaluation of performance.The performance appraisal is a tool for communicating with the employee. PE discussion serves as a communication tool where results are discussed with the employee.
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Performance Evaluation interview The performance interview is an activity which involves supervisor and an employee having an open discussion in a positive background. The objective of the feedback interview is to get employees to do more talking and thinking about their job performance in order to improve individual performance (Jone, 1998). PE Review and renewal Final element of PE is review and renewal PE review is an activity of assessing effectiveness of the PE process to decide what changes should be made to improve the PE process. PE renewal derives from PE review and it generates information which is feedback in the all elements of the PE program (Lopez, 1968). Performance evaluation rating errors The errors are caused by the subjectivity and bias of the evaluators. These errors occur in observations, judgment and information processing and can seriously affect PE results (Bernerdin and Russell, 1993). Following rating errors should be avoided by the evaluator for an effective performance appraisal:

Halo effect Central tendency Harshness & Leniency Recency Bias Similar to me error Personal prejudice

3.

CONCLUSION

There are several factors contributing towards the establishment of effective performance evaluation process. They are regularity of PE, training needs identification,
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pay for performance, recognition and appreciation, bias free evaluation, constructive feedback, and clear goals in performance during PE period. According to the survey conducted in thisresearch, majority of the respondents of employees were dissatisfied and have negative responseswith regardsto these factors in their organization. Following are the findings: 1. 2. 3. 4. 5. 6. 6. Regularity of PE Training needs identification Pay for performance Recognition and appreciation Bias free evaluation Constructive feedback Clear goals for PE period - 61% disagreement - 72 % dissatisfied - 61 % dissatisfied - 56% negative response - 55 % disagreement - 56% negative response - 56% disagreement

When considering the percentage of dissatisfaction for these factors we can come to a conclusion that effective performance evaluation does not take place in this organization. 78 % of the respondents pointed that ineffective PE is a hindrance for high performance of employees. 28% of respondents pointed that absence of PE directly caused the gap between actual performance and optimum performance. 30% of respondents say that poor communication caused less performance. Following are the results of ineffective performance evaluation according to respondents points of view: 1. 2. 3. 4. 5. Employee dissatisfaction - 33% Employee grievances Turnover Poor performance Unfinished projects - 17% - 22% - 11% - 17%

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Even though only 11% of the respondents mentioned that ineffective performance evaluation directly result in poor performance, other issues such as employee dissatisfaction, grievances, unfinished projects and turnover ultimately affect the overall employee performance. Considering the above facts we can come to a conclusion that ineffective performance evaluation decreases employee performance. Majority of the respondents expect changes in their PE such as, mutually agreed goals, two way communication, and pay for performance and fairness. According to the analysis 28% of respondents noted that employee job satisfaction can be increased by effective PE and 44 % of respondents pointed that achievement of organizational goals are the benefits of the effective process. 11% of them also pointed out that employee commitment increases by PE. These factors can improve employee performance. 83% respondents agreed that effective PE is a practical solution in NGOs to improve employee performance. Considering above facts, we can come to final conclusion that effective performance evaluation will improve employee performance.

4.

RECOMMENDATIONS

To set effective and meaningful performance goals The performance goals should be aligned with the overall organizational strategy. When there is alignment with organizational goals and individual goals, employees will increase their commitment towards achieving goals. When setting goals, those goals should be specific, understandable and achievable. Setting performance goals not only describes what to achieve but also how to achieve them. The goals can be challenging, but should not be unrealistic. Therefore, it is necessary for managers and supervisors to discuss with employees to get mutual agreement towards the performance goals for the given period.
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To train the evaluators The knowledge, skills and attitudes of the evaluators should be trained to conduct effective Performance Evaluations. Several skills such as communication skills, listening skills and leadership skills should be improved to monitor and guide employees to achieve determined goals. As it is an NGO, evaluating the organizations performance as well as the employees performance is a complicated entity. Particularly this organization is working for social change towards peace and justice in the country. Outcomes of this organization are not visible and difficult to measure. Because of that, relevant skills should be provided to the managers and supervisors to translate those outcomes into measurable outcomes of employee performance and to simplify the process and to produce accurate and fair performance evaluation results. To Link performance evaluation to reward decisions The current system provides general annual salary increments for all employees. When there is a general increment for the all employees, those who perform well, moderately, and poorly,receive same increment. As a result people who perform well can get frustrated and they can be demotivated by the current system of the organization. The employees who achieve high performance results should be rewarded. Financial rewards and non-financial rewards more responsibilities and important roles in the organization can be given to employees to motivate them to achieve higher performance levels. When there is a link between the rewards and performance evaluation employees will support the evaluation process and also take it seriously. Ultimately employees can be motivated to perform well through effective alignment between performance appraisal and reward system. To identify the training and development needs Performance evaluation serves the purpose of identifying training needs. The gap between the determined standards and the actual performance should be filled with training and development.
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The results of the performance appraisal should be used for inputs for the key areas of training and development of the organization in order to be an effective performance appraisal process. The performance evaluation should serve the purpose of developing and improving the performance standards of the employees. Therefore, it is important to link performance evaluation with training and development in order for it to be an effective performance evaluation and result in improved employee performance. To provide ongoing feedback Giving ongoing feedback both positive and negative is another important element of effective performance evaluation. Ongoing feedback is needed to encourage the employees throughout the year and to track them when they are struggling. The working environment may change during the year. The significance of some goals may change, obstacles may occur, or employees may lose interest in work. In those circumstances ongoing feedback will help employees to move forward. To provide constructive feedback When shortcomings are identified during the performance evaluation it should be communicated to the employees in a way they do not feel bad. Constrictive feedback is a technique to provide the negative feedback in an effective way. Sandwich model can be used for this. That is to start discussion with positive comments and then explain the changes needed in the behaviour and end with positive motivating comments. To create simple and understandable performance evaluation The performance evaluation form and procedure should be simple at the same time understandable by the employees. Otherwise, it will consume much time to proceed. If the performance evaluation process is complex, then willingness of employee and supervisor to proceedwith performance evaluation will be lost. Therefore it is recommended that simple and understandable performance evaluation be created.
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To conduct regular performance evaluation The current performance appraisal is not conducted regularly. Therefore this organization has to restart and regularize the formal effective performance evaluation system in the organization. Annual performance appraisal can be suggested to this organization with on-going feedback and regular documentation of performance of the employees.

REFERANCES Amy Delpo: Performance Appraisal Hand book, (2007) 2nd edition, PublisherConsolidated Printers, Inc. (page 69-75). Armstrong M and Angela Baron :(2003) Performance Management,1st edition Publisher: Charted Institute of Personnel and Development. (page 385, 395-402) Armstrong M: Armstrongs hand book of Performance management, (2010) 4th edition, Publisher-Kogan page India Private limited . (page 18-23, 61-71, 117-118, 210-211) Australia National Resource center on AOD Workforce Development: Work force Development Tips - A resource kit for the Alcohol and other drugs field Ben Ramalingam and John Mitchell with John Borton and Kristin Smart: Counting what counts Performance and effectiveness in the humanitarian sector, (2009). Publisher- Foxit Corporation . (page 2, 6-10) Gary Johns :NGO Way to Go: (2000) Publisher-Institude of Public Affair Ltd. Australia. (page-2-3) H.D.N.P Opatha: Performance Evaluation of Human Resources (2002) 1st edition, Published by author, Sri Lanka. (Page 24, 34-40 ,71-76, 110-114, 138, 142) H.D.N.P. Opatha, Employee Performance Evaluation Systems: An Evaluative Study of Selected Public Quoted Manufacturing Firms in Sri Lanka, Article. Nigel Harrison: Improving Employee Performance (2002) 1st edition, Publisher-Kogan page India Private limited. (Page 86-88) Phil baguley: Teach Yourself Performance Management,1st edition Publisher-Hoder& Stoughton (page 86-88) The IPM Lecture Notes on Performance Management.
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IMPACT OF HUMAN RESOURCE INFORMATION SYSTEMS ON STRATEGIC HUMAN RESOURCE MANAGEMENT

Shiwanthie Wijesuriya shiwanthie@gmail.com

ABSTRACT Information technology is expected to drive Human Resource(HR)s transition from a focus on Human Resource Management (HRM) to Strategic Human Resource Management (SHRM). This strategic role not only adds a valuable dimension to the HR function, but also changes the competencies that define HR professional and practitioner success. The study aims at investigating what role, if any, do Human Resource Information Systems (HRIS) play in SHRM. It attempts to examine how HR professionals and managers in different organizations see the effects of HRIS on strategic HR tasks and job roles. It also tries to find out if there is any significant difference in the usage of HRIS between Small/Medium (SME) size and Large size companies. A survey questionnaire was sent to 130 companies and a response rate of 20.77% was received. The target group of the questionnaire was HR Managers, HR Directors, and HR Professionals in companies. The scope was widened to include both large and small/medium sized organizations across all the business sectors.The results of the survey reveal that HR professionals not only consider HRIS usage as a support for strategic HR tasks but also perceive it as an enabling technology. Key words: Strategic human resource management, human resource information systems, human resource management, human resource

1.

STUDY BACKGROUND

Invariably, human resource management (HRM) issues have been major concern for managers at all levels, because they all meet their goals through the efforts of others,
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which require the effective and efficient management of people (Dessler et al., 1999). The spacious array of HRM activities for example, planning, recruiting, selection, and training just to mention a few, place enormous responsibilities on supervisors and managers alike. These embrace analyzing jobs, planning labour needs, selecting employees, orienting and training employees, managing compensation, communicating (which includes counselling and disciplining), and maintaining employee commitment. Lately, the increasing pressure to support strategic objectives and the greater focus on shareholder value has led to changes in both job content and expectations of HR professionals. Similarly Schuler and Mayfield noted that one such major change included contemporary use of Information Systems (IS) in support of the HRM process. More so, a careful analysis indicated that increased human resource information systems (HRIS) usage enabled improved professional performance and thus facilitated involvement in internal consultancy activities. In addition, according to Ulrich (1997), using HRIS provides value to the organization and improves HR professionals own standing in the organization. In another development, Brockbank (1999) suggested the need for HR to become a strategic partner. HRIS provides management with strategic data not only in recruitment and retention strategies, but also in merging HRIS data into large-scale corporate strategy. The data collected from HRIS provides management with decision-making tools. Through proper HR management, firms are able to perform calculations that have effects on the business as a whole. Such calculations include health-care costs per employee, pay benefits as a percentage of operating expense, cost per hire, return on training, turnover rates and costs, time required to fill certain jobs, return on human capital invested, and human value added. It must be noted though, that, none of these calculations result in cost reduction in the HR function. The aforementioned areas however, may realize significant savings using more complete and current data made available to the appropriate decision makers. Consequently, HRIS are seen to facilitate the provision of quality information to management for informed decision -making. Most notably, it supports the provision of executive reports and summaries for senior management and is crucial for learning organizations that see their human resource as providing a major competitive advantage. HRIS is therefore a medium that helps HR professionals perform their job roles more effectively.
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1.1.

Issue in Focus

This study explores the Impact of human resource information systems (HRIS) in strategic human resource management (SHRM). The question to address in this study therefore is What role if any; do HRIS play in SHRM?

2. 2.1.

REVIEW OF LITERATURE Definition of HRM

There is no clear- cut definition of HRM. However, the common ground settled by different HR professionals and academicians is that they recognize that HRM is closely fitted with business strategy than personnel management. John Bratton and Jeffrey Gold (2003: 7) define HRM as the strategic approach to managing employment relations which emphasizes that leveraging peoples capabilities is critical to achieving sustainable competitive advantage. This is achieved through a distinctive set of integrated employment policies, programs and practices. Moreover HRM aims at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies. The authors defined HRM as the management of people in organizations. It consists of the activities, policies, and practices involved in obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate number and skill mix of employees to accomplish the organizations objectives. The goal of HRM is to maximize employees contributions in order to achieve optimal productivity and effectiveness, while simultaneously attaining individual objectives and societal objectives (Dessler). 2.2. Processes of HRM

HR processes starts by planning labour requirements. This include, resource specifications, long range planning, forecasting supply and demand of labour, staffing, applicant qualification, training programs, costs analysis, salary, contract type, and other related issues. Other key HR processes involve recruiting, selecting, performance appraising, training and orientation, career development, occupational health and safety, and compensation and benefits.
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Figure 1:
Human capital management Human resource Management

Organization

Resourcing

Human Resource Development Organizational Learning

Reward Management Job Evaluation and Market Surveys

Employee Relations Industrial Relations

Design

Human Resource Planning

Development

Recruitment and Selection

Individual Learning

Grade and pay Structures

Employee Voice

Job Design

Talent Management

Management Development

Contingent Pay

Communication

HR Services

Health &Safety and welfare

Knowledge Management

Performance Management

Employee Benefits

2.3.

Strategic HRM

SHRM has evolved and been transformed from personnel management into traditional human resource management (THRM), and then to SHRM. SHRM, like HRM, do not have any consistent definition but scholars generally concord to the central feature of SHRM comprising designing and implementing a set of internally consistent policies and practices to ensure human capital contributions to achieving business goals. In spite of the increasing attention paid to SHRM, the term remains unclear. Some scholars have described SHRM as an outcome (Patrick Wright), others have described it as a process (Ulrich and Gerry Lake), and others have considered it a combination of process and outcome (Catherine Truss and Lynda Gratton, 1994). Moreover, Alan Bamberger and Professor Ilan Meshoulam (2000) argued that SHRM is a competency -based approach to personnel management that focuses on the development of durable, imperfectly imitable, and other non--tradable resources. However, in the absence of a consistent definition, scholars broadly agree that the central feature of SHRM involves
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designing and implementing a set of internally consistent policies and practices to ensure that firm human capital contributes to achieving business objectives (Gratton and Hope -Hailey, 1999; Jackson and Schuler, 1995). According to Michael Armstrong (Handbook of Human Resource Management Practice) Strategic HRM is an approach to making decisions on the intentions and plans of the organization concerning its recruitment, training, development, performance management, reward and employee relations strategies, policies and practices and the employment relationship generally. The changes identified in the shift of HRM to SHRM included integration of the human resource function into strategic decision -making, a decentralization of much activity to line managers, effective communications, human resource development, workplace learning, career management and human capital accumulation. These were in addition to managing organizations trade unions relations, greater worker autonomy, high commitment management, leadership, and business processes reengineering. Figure 2:

2.4.

The Meaning of Strategic HRM

Strategic HRM has four meanings: 1) the use of planning 2) A coherent approach to the design and management of personnel systems based on an employment policy and manpower strategy and often underpinned by a philosophy 3) Matching HRM activities and policies to some explicit business strategy 4) Seeing the people of the organization as a strategic resource for the achievement of competitive advantage.
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2.5.

Aims of SHRM

There are several aims to strategic HRM such as 1) Generate strategic capability by ensuring that the organization has the skilled, committed and well-motivated employees it needs to achieve sustained, competitive advantage. 2) Provide a sense of direction in an often turbulent environment so that the business needs of the organization and the individual and collective needs of its employees can be met by the development and implementation of coherent and practical HR policies and programmes. 3) Provide unifying frameworks which are at once broad, contingency based and integrative (Dyer and Holder).Also there are several approaches to SHRM such as resource-based strategic HRM, Strategic fit, best practise, best fit and bundling. 2.6. HRIS

The Human Resource Information Systems is introduced by presenting the various definitions, development, costs and benefits, as well as their functions and relationship with HRM. Furthermore, different software providers and their solutions are presented. HRIS shape an integration between human resource management (HRM) and Information Technology. Even though these systems may rely on centralized hardware resources operationally, a small group of IS specialists residing within the personnel department increasingly manage, support, and maintain them. HRIS support planning, administration, decision -making, and control. The system supports applications such as employee selection and placement, payroll, pension and benefits management, intake and training projections, career--pathing, equity monitoring, and productivity evaluation. These information systems increase administrative efficiency and produce reports capable of improving decision -making (Gerardine DeSanctis, 1986: 15). HRIS is an effective and efficient catalyst for integrating human resource management and Information Technology. This was common with all the various definitions of HRIS. Tannenbaum (1990) defines HRIS as a technology- based system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organizations human resources. Kovach et al., (1999) defined HRIS as a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by organizationsregarding its human resources, personnel activities, and organization unit characteristics. HRIS as a system support HR functional applications
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such as employee selection and placement, payroll, pension and benefits management, intake and training projections just to mention a few. 2.7. Components of HRIS

The composition of HRIS includes input, maintenance, and output. Input function enters personnel information into the HRIS. The maintenance function updates and adds new data to the database having entered data into the information system. The output is considered the most visible function of an HRIS. HRIS process that output, adjust it in such a way that it is understandable. Kovach et al., (1999) presented the three major functional components in any HRIS by giving the model below: Input 2.8. Users of HRIS Data Maintenance Output

The three major groups that make use of HRIS are HR professionals, managers in functional areas, and employees. Whiles HR professionals rely on the HRIS in fulfilling job functions, managers rely on the HRISs capabilities to provide superior data collection and analysis, especially for performance appraisal and performance management. Individual employees are the end users of many HRIS applications and complexities of job related issues have augmented the awareness of HRIS functionality among employees. 2.9. HRIS Functions

Functional HRIS must create an information system that enables an assimilation of policies and procedures used to manage the firms human capital as well as the procedure necessary to operate the computer hardware and software applications (Hendrickson, 2003). While information technology affects Human Resource (HR) practices (Lengick--Hall et al., 2003) HRIS and HRIS administration comprise a distinct supporting function within HR. In addition to HRISs integration function, HRIS enable effectiveness and efficiency, and ensure competitiveness among firms. However, along with the benefits are the costs involved in implementing and maintaining these systems. For example, hardware and software cost, time, and other related costs. There are many software solution offers; the choice is however
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dependent on the decision of the user. Consequently, information validity, reliability and utility constitute a comprehensive HRIS, and should always be the pivot for every HRIS implementation. 2.10. Hypothesis Various researchers have all agreed to HRIS capabilities in shaping the integration between human resource management (HRM) and Information Technology by supporting planning, administration, and strategic decision- making, and control (Gerardine DeSanctis, 1986: 15; Tannenbaum, 1990; Hendrickson 2003). Drawing from the literature reviewed above, it is proposed for this study that there is a direct relationship between HRIS towards SHRM. Based on the conceptual framework developed for the study, following hypotheses were proposed: 1. 2. 3. 4. 5. H 1: HRIS play a major role in strategic HR tasks. H 2: HRIS are used by HR professionals in support of strategic HR tasks H 3: HR professionals see HRIS as an enabling technology. H 4: HRIS will be used differentially by Small and medium sized companies in support of strategic HR tasks relative to large sized companies. H 5: HRIS will be used more in support of strategic HR tasks in organizations in the future.

3. 3.1.

METHOD Sample

To retrieve a list of companies, the companies which are listed in Colombo Stock Exchange and most reputed companies are selected as well as clients of HRIS development companies. The assumption was that, most companies have HR departments, especially the larger companies. The first query was to find large companies in all business sectors. The inquiry returned 130 firms in alphabetical order. In all 130 companies were selected for the survey. Regarding this study, samples
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of 130 companies were stratified. This sample size represented 42.5% of the original sample from which the 130 companies were selected. 3.2. Data Collection Instrument and Measures

The study used a questionnaire survey to explore the HRIS role in SHRM. As stated earlier in the questionnaire included demographic information needed to assess the respondents level of experience in the field of HR and their various positions held. Questions 1 and 5 were asked in that effect. Respondents were asked, What is your role or title?, and How long have you worked as an HR specialists? It was expected that the longer the years of experience as HR professional, the more likely it is to obtain reliable information. More so, the position or title in the questionnaire was to determine the authority of the respondents in the field under study. The study revealed that while 25% of the respondents had below 5 years experience as an HR specialist, 37.5% of them had between 5 and 10 years of experience. Again, respondents with over 15 years of experience as HR specialists also represented 37.5%. Altogether, 75% of the respondents had more than enough experience to give information which is more credible in this area of study. The highest recorded experience was 30 years, and the lowest was 6 months. Similarly, regarding the roles or positions of the respondents in the various organizations, 25% were HR managers, another 25% represented HR directors, and 33.3% were HR professionals. It was also noted that 16.7% of the respondents did not provide their roles. This might be explained by the general roles, which most managers assume, or a calculated attempt not to provide such piece of information. Therefore, given that 83.3% of the respondents had specific roles in the field of HR boosted the validity of the survey by adding more value to it.

4.

RESULTS

This section presents the results from the empirical studies. The findings were reviewed by considering the different formulated hypotheses one after the other.

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Hypothesis 1 Hypotheses 1 purported that HRIS plays a major role in strategic HR tasks. In order to verify this assertion, respondents were asked, To what extent do HRIS play a role in strategic HR tasks? A single sample T--test was conducted using a hypothesized mean value of 3. This was because, respondents were asked to use a scale 1 to 5 in responding to the question. The aim here was to compare the sample mean with the hypothesized mean for probability estimation, that the sample mean is different by chance or random occurrence. The t--test revealed that the question used for this hypothesis had a mean value of 3.88 with a corresponding significant p--value of less than 0.000 (See Table 1 below and Appendix B (iii)). It showed that there is a significant difference between the two mean values, and therefore indicated that the probability of this being a chance was 0 (t--test, p<0.05). Figure 5 is the graphical representations of the results. Table 1: The extent of HRIS role in strategic HR tasks (T--test)
Test Value = 3 T df 95% confidence Sig. Mean (2 ailed) difference Interval of the difference Lower The extent of HRIS role in strategic HR tasks 4.143 23 0.00 0.875 0.44 Upper 0.131

The results revealed that there is a strong support for the statement that HRIS plays a major role in strategic HR tasks. The findings are consistent with the organizations increased reliance on the use of HRIS in support of strategic HR tasks, and HR professionals higher professional ratings after using HRIS. Hypothesis 1 is therefore accepted. Hypothesis 2 Hypothesis 2 purports that HRIS are used by HR professionals in support of strategic HR tasks. A single sample t--test carried out produced a mean value of 3.13 with corresponding p--value of 0.63 at 95% CI. The p--value of 0.63 is not statistically significant. In other words, the mean value (3.13) is not significantly different from the hypothesized value of 3.
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Table 2: The extent of HRIS use in support of strategic HR tasks performance strategic HR Task Performance - One-Sample Test
Test Value = 3 T df 95% confidence Sig. Mean (2 difference Interval of the difference tailed) Lower The extent of HRIS support of 0.485 strategic HR Task - Performance 23 0.632 0.125 -0.41 Upper 0.66

There is evidence that HRIS are used in support of strategic HR tasks. The findings are consistent with the organizations increased reliance on the use of HRIS in support of strategic HR tasks. Hence, hypothesis 2 is accepted. Hypothesis 3 Hypothesis 3 presumes that HR professionals see HRIS as an enabling technology. This was investigated using a scale 1 to 5 as a measure of degree of HRIS support. The assumptions for Questions are that, the greater the degree of HRIS supports for the presumed strategic HR tasks, the stronger the HRIS technological enhancement. Moreover, the higher the HR professional standing in the organization after using HRIS in strategic HR tasks the stronger the HRIS technological enablement. The single sample t--test conducted reported a mean value of 3.35 regarding HRIS use in support of Communication as a strategic HR task with corresponding p--value 0.20 (t--test p>0.05). This shows that there is no statistically significant difference between the mean value and the hypothesized mean, 3. Likewise, HRIS use in support of Performance and Extend Skill Base as a strategic HR has mean value (3.30) not significantly different from T--value of 3 with a p-value of 0.15 (t--test, p>0.05). Additionally, the extent of HRIS use in support of Career management as a strategic HR task recorded a mean value of 2.83 and a p-value, 0.48 (t--test, p>0.05). There is no statistically significant difference between the mean values. Similarly, there is no significant difference between the mean value (2.67) and the hypothesized mean (3) given the p--value of 0.23 (t--test, p>0.05) in respect of the extent of HRIS use in support of Commitment management.
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Moreover, the single sample t--test performed on the extent of HRIS support for Leadership management revealed that there is no significant difference between the mean value (2.78) and the hypothesized mean (3), with a p--value of 0.40 (t--test, p>0.05). Again, the test results on HRIS use in support of Business process reengineering noted that there is no significant difference between the mean value (3.26) and the hypothesized mean, 3. The p--value was 0.30 (t--test, p>0.05). However, HRIS use in support of Managing relations with organizations trade unions as a strategic HR task showed a significant difference in the mean values (2.18) and (3). The p--value of 0.01 (t--test, p<0.05) is statistically significant. Finally, Decision making as a strategic HR task generated mean value (3.30) and a p-value 0.25 (t--test, p>0.05). This indicates that there is no statistically significant difference between the means. Furthermore, the t--test results for How important are HRIS in helping you to perform your job more professionally? have a mean value of 3.57 corresponding to the p--value of 0,001. The p--value is significant indicating that there is a significant difference between the mean value and the hypothesized mean value (3). Furthermore, the t--test for HR professionals noted an increase in their professional standing after using HRIS has a mean value of 3.57 corresponding to the p--value of 0,001. The p--value is significant indicating that there is a significant difference between the mean value and the hypothesized mean value (3). Table 3: Ratings of professional standing in organization after using HRIS: One Sample Test
Test Value = 3 T df 95% confidence Sig. Mean (2 difference Interval of the difference tailed) Lower Ratings of Professional standing in organization after using HRIS 3.725 22 0.001 0.565 0.25 Upper 0.88

The findings indicated that HR professionals see HRIS as an enabling technology because using HRIS in their organizations increase their professional standing. However, the test to see if HRIS support HR strategic tasks noted that it is not all of
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the proposed strategic tasks that HRIS support. There is evidence of HRIS support for communication, Performance and Extend Skill Base, business process reengineering, and decision -making as a strategic HR tasks. On the other hand, while there is a weak evidence of HRIS support for career management, commitment management, and leadership management as a strategic HR tasks; the evidence of HRIS support for motivation is very weak. On the average, there is evidence that HR professionals see HRIS as enabling technology. Hypothesis 3 is therefore accepted. Hypothesis 4 Hypothesis 4 asserts, HRIS will be used differentially by Small and medium sized companies in support of strategic HR tasks relative to large sized companies. The independent sample t--test carried out revealed that the degree of HRIS usage in respondents organization in the SME differed significantly from the large organizations. Table 4: HRIS usage in respondents Organizations Independent Samples
Type of Sig Organization (2-tailed) HRIS usage in respondents organizations Large SME 0.01 0.057

Test Significant at 0.05 Level There was a significant difference in the proportion of SME and large companies, who use HRS in support of communication as a strategic HR task. However, the test showed no significant difference in the proportion of users from SME and large companies who use HRIS in support of Performance and Extend Skill Base. In addition, there was a significant difference in the proportion of users between SME and large companies, who use HRIS to support Career management as a strategic HR task. Moreover, there was no significant difference in the proportion of users between SME and large companies, who use HRIS to support Commitment management as a strategic HR task. Nonetheless, there was a significant difference in the proportion of users between SME and large companies using HRIS in support of Leadership management as a strategic HR task. Again, there was a significant difference in the proportion of

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users between SME and large companies, who use HRIS to support business process reengineering as a strategic HR task. Similarly, there was a significant difference in the proportion of users between SME and large companies, using HRIS to support motivation as a strategic HR task. Finally, there was also a significant difference in the proportion of users between SME and large companies, using HRIS in support of decision -making as a strategic HR task. The independent sample t--test carried out revealed that the degree of HRIS usage in respondents organization in the SME differed from the large organizations. In other words, the degree of HRIS usage in respondents organization is dependent on the type of organization. The large companies favoured HRIS usage than the SME. In sum, there was overall evidence of difference in the proportion of users between SME and large companies, using HRIS to support specific strategic HR task. SME had limited use of HRIS in support of specific strategic HR tasks compared to large companies. The conclusion is therefore that HRIS will be used differentially by Small and medium sized companies in support of strategic HR tasks relative to large sized companies. Hypothesis 4 is then accepted. Hypothesis 5 Hypothesis 5 examines whether HRIS will be used more in support of strategic HR tasks in organizations in the future. The single sample t--test performed with regards to the development of HRIS in communication showed that there is no significant difference between the mean (3.57) and the hypothesized mean value, 3. The p--value, 0.24 (t--test, p>0.05) is statistically not significant. Moreover, the test on Performance and Extend Skill Base recorded a mean value of 4.13, and a p--value of 0.000 (t--test, p<0.05). This indicates that the mean value is significantly different from the hypothesized mean of 3. In a similar test performed in this study, the results revealed that the mean value in respect of career management was significantly different from the hypothesized mean. The mean and the p--values were 4.04 and 0.000 respectively (t--test, p<0.05).

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Again, there is no significant difference between the mean value (3.33) and the hypothesized mean (3) given the p--value of 0.15 (t--test, p>0.05) in respect of HRIS development in Commitment management. More so, the test performed on HRIS development in Leadership management revealed that there is a significant difference between the mean value (3.57) and the hypothesized mean (3), with a p--value of 0.02 (t--test, p<0.05). Consequently, the test results on HRIS development in Business process reengineering noted a significant difference between the mean value (3.61) and the hypothesized mean, 3. The p--value was 0.003 (t--test, p<0.05). In addition, HRIS development in employee motivation showed a significant difference in the mean values (2.21) and (3). The p--value of 0.006 (t--test, p<0.05) is statistically significant. Lastly, HRIS development in decision -making generated a mean value (3.83) and a p--value less than 0.000 (t--test, p<0.05). This indicates that there is a significant difference between the means. There was evidence that HRIS would be used more in support of strategic HR tasks in organizations in the future. This is consistent with the test to see if HR professionals think that HRIS should be developed in organizations. The results showed that HR professionals think that HRIS should be developed in most of the strategic HR tasks. This is very much the case concerning HRIS development in Communication, Performance and Extend Skill Base, Career Management, Commitment Management, Leadership Management, Business Process Re-engineering, Motivation and Decision Making, as strategic HR tasks. Again, there is strong evidence of HRIS development in most of the strategic HR tasks, but weaker evidence with regard to motivation. In all, Hypothesis 5 is also accepted.

5.

FINDINGS & RECOMMENDATIONS

This study aimed at exploring HRIS role in SHRM. The study attempted to examine how HR professionals or managers in different organizations see the effects of HRIS on strategic HR tasks, and job roles. It also tried to find out if there is a significant difference in HRIS usage between SME and large sized companies in respect of strategic HR tasks performance.
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On one hand, various studies on HRM propose that HRIS can contribute to the creation of a long-term competitive advantage through integration of HRM functions with HR technology (Gerardine DeSanctis, 1986: 15; Tannenbaum, 1990; Hendrickson, 2003). However, these studies did not address the role, if any, HRIS play in SHRM. On the other hand, a number of strategic HRM tasks have been identified. These include Communications, Performance and Extend Skill Base, Career Management and Human Capital Accumulation (Sparrow and Hiltrop, 1994: 25 cited in Morley et al., 2006; Beer et al., 1984; Keep 1989). Dixon (1992) and Kochan and Dyer (1995) consider greater worker autonomy, high Commitment Management, Leadership, and Business Process Re-engineering as strategic HRM tasks. Another one includes managing employee Motivation (Michael Armstrong). Linking both fields of research, it was argued that HRIS might play a vital role in SHRM based on the following assumptions:

HR professionals might also consider HRIS usage in support of strategic HR

tasks given the unrelenting HRIS support for the HR professionals job (Buckley et al., 2004; Gardner et al., 2003; Ulrich, 1997; Brockbank; 1999).

HRIS would continue to be used more in support of strategic HR tasks in

the organization in the future considering the augmenting pressure on HR professionals to support strategic objectives through more innovative HRIS applications (Storey et al., 2000; Ball, 2000). The empirical results of the study revealed that HRIS play a key role in strategic HR tasksand have a great impact on SHRM. This is an indication that HRIS capabilities in shaping the integration between HRM and IT (Hendrickson, 2003) are also applicable to SHRM. This means that HR professionals would be able to cope with their new roles without panicking because their new role, SHRM, is still supported by HRIS. However, in the case of specific strategic HR tasks, the degree of the support depended on the type of organization. Larger firms/companies experienced a great deal of HRIS support in most of the strategic HR tasks namely,Communication, Performance and Extend Skill Base, Career Management, Business Process Re-engineering, and Decision Making. On the contrary, HRIS usage in support of Commitment Management, and Employee Motivation did not reveal any significant difference in proportion of
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users in SME and large companies. It implies that users of HRIS need to identify their strategic HR tasks and organization type before embarking on any HRIS implementation in order to enjoy the full benefit of using HRIS both to HR professionals and to the organization as a whole. . HR professionals considered that HRIS are used in support of strategic HR tasks. This might be explained by the fact that increased uses of HRIS allow professionals to achieve improved performance and thus facilitate participation in internal consultancy (PMP (UK) Ltd 1996; and 1997). The results confirmed Gardner et al., (2003) revelation, that extensive use of IT enables HR professional to have more information autonomy. This disclosure implies that firms will more or less need to rely on HRIS technology for effective and efficient performance of their strategic human resource management tasks. This calls for total commitment on the part of both management and HR professionals towards a successful HRIS implementation. In a dynamic global market where IT is the order of the day, firms without this technology might not only find it difficult attracting HR professionals who are yet to acquire HRIS skills and seeking for one on the job, but also lose those HR professionals who have these skills and might want to develop and improve upon them. Notably, the study suggested that HRIS are likely to be used even more for strategic HR tasks in the future; this was a strongly held belief by both SME and large sized companies. The response from the large companies were however, remarkably more positive than those from the SMEs. Large companies have well-established facilities such as intranets and extranets to access the required personnel information quickly and efficiently (Ngai et al., 2004). SMEs generally lack the capital and technical resources to implement HRIS (Ibid). While it is incumbent upon all organizational types to stay abreast with HRIS dynamics by keeping system updates SMEs are the most vulnerable due to the incidence of cost. A more feasible way to start may be to use pre-packaged HRIS software. Implementing HRIS is very costly but a successful implementation contributes to cost reductions, quality/customer satisfaction, and innovation, which eventually lead to competitive advantage (Broderick and Boudreau, 1992). It therefore implies that SMEs especially will need to consider a vigorous ositive change in policy regarding HRIS applications to strategic HR tasks regardless of the cost involved because the cost of non-implementation may be relatively higher.
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The study again showed that HR professionals agree that the HRIS usage for strategic HR tasks lead to enhanced professional standing in the organization. This was in line with Brockbanks (1999) findings that HR professionals both provide value to the organization and improve their own standing in the organization by using HRIS. The implications of this disclosure are that HR professionals will need to develop their IT skills and come abreast with HRIS technology in order to remain competitive in the labour market. This means that firms will also need to develop and plan HRIS training programs for both prospective and existing HR professionals in line with specific strategic HR tasks since enhanced professional standing implies effective and efficient work-force which leads to improved performance and increased output resulting in higher profit margins and acceptable returns on investment (ROI). Interestingly, the study showed a lack of HRIS support for managing trade union relations with the organization. This was very much the case irrespective of the type of organization. The failure to use HRIS in support of trade union relations with the organization means that there will be little consideration of how HR policies regarding labour issues might potentially change trade unions attitude towards collective bargaining. The immediate objectives and activities of trade unions vary, but may include provision of professional training, collective bargaining, industrial action, legal advice and representation for members (Fraser and Hamish 1974: 34). In an attempt to enforce the unions objectives, union leaders normally find themselves in confrontation with the employers, which most often leads to industrial actions. Effective and efficient management of trade union relations reduces industrial actions, conflicts, and wastes. However, the lack of HRIS support in managing trade union relations implies no standard way of communicating just-in time information between the parties. This might make conflict resolution difficult. The inability to resolve conflict leads to strike actions, the ultimate results of which are, output reduction, low returns, slow growth and expansion, loss of skilled employees, high employee turnover, and other resultant effects.

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6.

CONCLUSION

Overall, the study suggested that HRIS play a key role in SHRM, but the degree of the role was also very much dependent on the type of organization. This provides some insights into the usage of HRIS in strategic HR tasks by some selected companies which should help HR practitionersacquire a better understanding of HRIS role in SHRM. However, caution should be exercised in generalizing the results of the study due to the small sample size. Nevertheless, the results provide basis for future research. Whilst this study has confirmed existing studies into HRIS, it provides a platform for future work in this area, which should concentrate on a number of issues. First, a detailed research would be needed to explore the role of HRIS in SHRM, especially, with much bigger sample size and a higher response rate so that a deeper analysis can be done for generalization. Second, HRIS represent a large investment decision for companies of all sizes. However, SMEs are increasingly failing to use HRIS in support of strategic HRM tasks. It would therefore be very interesting if future research could be geared towards finding answers to why SMEs are reluctant to commit time and resources for the implementation of HRIS in strategic HR tasks. This will enable a careful analysis and diligent consideration of HRIS application to strategic HR tasks since a successful execution is rewarded with numerous benefits including improved accuracy, provision of just--in--time information, and costs saving (Lederer, 1984; Wille and Hammond, 1981). Third, an in--depth study on HRIS usage in support of trade unions relations with organizations needs further examination. This will allow both the trade unions and the employers to manage and resolve conflicts and other related labour issues efficiently and effectively. Finally, as HRIS becomes an increasingly vital component of SHRM tasks performance, researchers must expand their efforts to understand the opportunities and threats that it fosters. Human resource information systems may be a key enabler allowing HR professionals to balance successfully the competing roles of administrative expert, employee champion, change agent, and strategic partner (Ulrich, 1998). There is also
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a risk that large investments in HRIS will not improve HR professionals satisfaction or render the SHRM tasks performance a more efficient cost centre. These may be outgrowth of low technology acceptance among intended users, inappropriate technology choices, or other factors. Until more is known, investments in these innovations should be made with caution.

REFERENCES Alan Bamberger, Peter & Professor Ilan Meshoulam (2000): Human Resource Strategy: Formulation, Implementation, And Impact (Advanced Topics In Organizational Behavior): Sage Publications, Inc Armstrong, Michael (2007) : A Handbook of Human Resource Management, 10thEdition. Bratton John and Gold Jeffrey (2003) Human Resource Management: Theory and Practice 3rd Edition London: Palgrave Macmillan. Dessler Gary, Cole Nina D., and Sutherland Virginia L. (1999) Essentials ofHuman Resources Management in Canada7th Edition. Prentice-Hall Canada Inc. Scarborough, Ontario. Kotler J. (1996) Leading Change, Boston, MA: Harvard Business. Kovach, K.A., Hughes, A.A., Fagan, P. and Maggitti, P.G. (2002), Administrative and strategic advantages of HRIS, Employment Relations Today, Vol. 29 No. 2, 43-48. Lawler E.E., Mohrman S.A. HR as a Strategic Partner: What Does It Take to Make It Happen? Human Resource Planning 26 (3), 2003, 15-29. Ngai E. W. T. and Wat F. K. T (2004) Human Resource Information Systems AReview and Empirical Analysis. Porter M.E. (1996) What Review, Nov.-Dec. pp.61-78. is a Strategy Harvard Business

Schuler R.S., Jackson S.E., Storey J.J., HRM and its Link with Strategic Management. Shrivastava Samir and Shaw James B. (2003) Liberating HR through Technology. Ulrich David, Human Resource Champions From e--business to e-HR. HRIM Journal 5(April, June 2001, 90-97.
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BOOK REVIEW Dealing with sexual harassment in the workplace: Guide to employers and employees by Arosha S. Adikaram. Pannipitiya: Stamford Lake Publication. 2011.
Reviewed by Pavithra Kailasapathy Head and Senior Lecturer, Department of Human Resources Management, Faculty of Management & Finance, University of Colombo pavithra.kailasapathy@gmail.com

In Sri Lanka we boast of our 2500 years of history and culture. Further, our country has good life expectancy, literacy rates and low maternal and infant mortality rates. Girls are in more numbers in secondary schools, and even in universities females outnumber the males in some faculties. We also take pride in saying Sri Lanka produced the worlds first woman Prime Minister and that we also boast of a woman President who ruled for many years. But these statistics and information on women deceive many things that take place in our country. There are many gender issues in our country, society and in the workplaces. These issues such as, incest, eve teasing, sexual harassment, rape, violence against women, domestic violence, pay gap, discrimination etc., are usually not addressed by the public. These problems are ignored, swept under the carpet, denied, or joked about. Doing such acts as rape, sexual harassment, violence against women or any human is not our culture and it should not be part of our culture. However, these incidents continue to take place on a daily basis. This is quite sad. Despite many decades of feminist movement in this country, increased education levels and development, such issues still prevail. There is still a lot to do in eradicating and preventing these matters. Dr. Arosha S. Adikarams latest book is on dealing with sexual harassment in the workplace. Dr. Adikaram who is a Senior Lecturer in the Department of Human Resources Management, Faculty of Management & Finance, University
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of Colombo, has been researching in the area of sexual harassment for quite some time. Sexual harassment can take place on the roads while we are walking, it takes place in the public transportation (e.g., buses, trains), and at workplaces. Dr. Adikaram addresses sexual harassment at workplaces. There are laws in this country that deal with sexual harassment and organisations (though not all) have policies on sexual harassment. However, when a victim reports such an incident no action is taken. Not only that, the victim is further victimised by organisations taking action against the victim. For example, you can read about the case of Rangika in this book. Rangika was fired from her job after she reported that she was sexually harassed by one of her superiors. This case is similar to the case of senior Indian Air Force Officer Anjali Gupta. She had accused three superior officers of sexually harassing her. In turn Indian Air force charged her with corruption and court martialled her. In the end she committed suicide. The book also refers to cases where organisations had taken no action when incidents are reported, or where colleagues and society had victimised the victim; like in the case of the teacher referred to in the book. In all these cases the perpetrator is not punished in anyway, not even reprimanded. Sometimes the perpetrator is even promoted (i.e., rewarded than punished!). The book also discusses how organisations strictly adhere to policies and procedures for any other matter such as, lateness, disciplinary matters, performance, decision making, and how when it comes to sexual harassment such adherence to policy, even where policies exist, is not seen. With regard to the book, Dr. Adikaram has written it in very simple English and in a way that makes you want to read more. She takes the reader step by step from explaining what sexual harassment is, what companies should do, investigation procedures and so on. She has even included a policy model for organisations. Therefore, this book is indeed a guide to employers and employees. I hope by publications such as this and other awareness efforts, sexual harassments are handled in the correct way without further victimising the victim. Sri Lankan organisations have a lot to do in this area.

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THE EVOLVING ROLE OF MODERN HR MANAGER

Chandrasiri Gannile Honarary Secretary, IPM - Sri Lanka gannile1@gmail.com

The whole gamut of role of HR has evolved to that of an essential and integral part of the anatomy of any professional who wishes to gird oneself with people management skills . The intense competition that drive todays corporate world demands a lot from its employees and this is where the competent and qualified Human Resource Management Professional play a vital role. Investing time and effort into hiring employees that complement an organizations style and finding the correct balance between shared values and diversity of viewpoints can be challenging. It requires a clear understanding of the organizations values. And it requires agreement on those values. And it also requires that those values are exemplified and used as a benchmark at every stage of the employment process- from recruitment and hiring, to training, to promotion and termination decisions. Its not an easy task, but all the same, it is a very crucial role. It is heartening to note that HR management has become a much sought after academic path for study fellows and it is our hope that the awareness and knowledge gained would stand them in good stead in their professional future. The expression People Drive Business has now become the buzz phrase in the corporate world. Yet ponder awhile and let this phrase sink in to each one of us. Isnt it then simply true? Those who are less concerned over their people, and untrained and unskilled workers with attitudes not in sync with the required business environment, would continue to under- perform. And the resulting low morale and productivity will lead to employees who are not motivated in achieving better results than their counter parts in the industry. It is a true fact that people oriented management is taking vast strides in the world of business. Innovative ideas from people to guide their businesses, and which are being carried out by energized people, again would give a whole new concept and indeed a new meaning to the phrase, People Drive Business!
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Todays business leaders who are much concerned about their financial resources rather than human capital would in fact end up losing many business opportunities, whilst those who preserve and develop their Human Resources even through many setbacks in other areas will have a greater chance in regaining lost opportunities faster and successfully. HR is often perceived as procedure, compliance, and protocol driven, or sometimes even as organizational bottlenecks, being reactive to every new situation which may arise in day todays business environment. The new HR roles are work force planning, employer branding, and employee retention. These roles will be responsible for developing a system that identify and mange how the organization is perceived by both internal and external key talent constituencies to ensure that the organization develops and maintains a dominant position in relevant labor markets as the employer of choice (Note that the emphasis on this new role is not an employment advert but an understanding and managing perception among key constituents). Specific responsibilities for these roles include: Developing and implementing an employment branding strategy that ensures key constituents continue to perceive the organization as an employer of choice, thereby simplifying talent retention and motivation. Marshaling internal management practices and people programs to ensure that the employment experience delivered is capable of sustaining projected talent needs. Overseeing the creation and integration of employment branding messages in all public relations, media relations, marketing communication, community relations, special events, and recruitment advertising campaigns. Identifying and developing storylines around company management practices that can be repeated internally and externally through employee referral campaigns, public speeches by executives/managers, news stories, and select award program applications. Periodically assessing employment brand internally and externally to ensure alignment between current strategy and labor market conditions. Establishing and maintaining the business case for organizational change needed to develop the required employment brand
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These new roles can be associated with three main perspectives: functional specialism, level of competence, and key behavior. The professional areas where HR has to work are : 1. Strategy, insight and solutions 2. Leading and managing the function 3. Organization design 4. Resourcing and talent planning 5. Organization Development 6. Learning and talent development 7. Performance and reward 8. Employee relations 9. Employee engagement 10. Information and service delivery. The competence would highlight what you need to know (the knowledge factor) and what you need to do (activities) then how you need to do it (behaviors). The last dimension sets out the qualities that HR practitioners need in order to be effective, these qualities are : 1. Curiosity 2. Decisive thinking 3. Goal driven 4. skilled influencer 5. Team Player 6. Credibility 7. Ability to take on a challenge and 8. Role model. However the above roles and the volume of work are to be dealt with in line with the strategic priorities of the organization. The professional institutes like IPM Sri Lanka has a pivotal role to play in creating an environment for developing HR professionals from junior category to a most senior HR professional who serves as a board member of an organization.

REFERENCES : Chartered Institute of Personnel Development (2009) HR Business Partnering, CIPD, London Schuler, R.S. and Jackson, S.E (2009) Strategic Human Resource Management, Blackwell, Oxford People Management (2009), CIPD, UK.

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