Assignment on Human Resource Management [HRM]

Contents
1.0 Introduction .............................................................................................................................. 1
2.0 Overview of Dialog .................................................................................................................. 2
3.0 Concept of Human Resource Management ....................................................................... 2
3.1 Purpose of Human Resource Management ................................................................... 3
4.0 Functions of HRM ................................................................................................................... 5
4.1 Contribution of HRM functions to Dialog’s Objectives ................................................... 7
4.2 Approaches to Recruitment and Selection ...................................................................... 8
4.2.1 Recruitment Methods .................................................................................................. 8
4.2.2 Selection Methods ..................................................................................................... 12
5.0 Impact of training, performance appraisal and compensation ....................................... 18
5.1 Benefit of training, performance appraisal and compensation on employees and
employers.................................................................................................................................. 18
5.2 Influence of training, performance appraisal and compensation on productivity and
profitability ................................................................................................................................. 20
6.0 Influence of employee relations .......................................................................................... 22
7.0 Employment Legislations ..................................................................................................... 23
8.0 Job Description and Job Specification ............................................................................... 25
8.1 Influence of Job description and Job Specification On HR functions ....................... 27
9.0 Conclusion .............................................................................................................................. 28
1.0 Introduction
Human Resource Management [HRM] is a combination of people-oriented
management practices that views employees as assets rather than costs; and its
main aim is to create and maintain a skilful and committed workforce to gain
competitive advantage. It is essentially the efficient and effective utilisation of
human resources. HRM functions include conducting job analyses, planning
personnel needs, recruiting the right people for the job, orienting and training,
managing wages and salaries, providing benefits and incentives, evaluating

performance, resolving disputes, and communicating with all employees at all
levels. (Khan, 2019)
The purpose of this report is to outline the Human Resource Management practices
in the telecommunication industry. Initially, the purposes and scope of human
resource management will be explained in terms of resourcing an organisation with
talent and skill appropriate to fulfil business objectives. Secondly,the effectiveness
of the key elements of HRM in an organisation will be evaluated. Moving on, an
analysis on the internal and external factors that affect HRM decision making,
including employment legislation will be provided. Finally, human resource
management practices will be applied in a work related context.
2.0 Overview of Dialog
Dialog Axiata, a subsidiary of Axiata Group Berhad (Axiata), operates Sri Lanka’s
leading quad-play connectivity provider. Dialog Axiata PLC, listed on the Colombo
stock exchange, supplements its market leading position in the mobile
telecommunications sector with a robust footprint and market presence in Sri
Lanka’s fixed telecommunications and digital television markets through its fully
owned subsidiaries Dialog Broadband Networks (Private) Ltd and Dialog
Television (Private) Ltd. The company has received numerous local and
international awards including the Telecom/Internet Service Provider of the Year,
National Quality Award and Sri Lanka Business Excellence Award; and was the
first South Asian company to receive Customer Service Quality Standard [CSQS]
certification, in recognition of its achievements and high level of compliance to
CSQS in contact management; thus delivering world-class customer service to its
8 million subscribers. (Dialog, 2020)
3.0 Concept of Human Resource Management
Armstrong (2006, p-3) defines Human Resource Management [HRM] as ‘a
strategic and coherent approach to the management of an organisation’s most

valued assets – the people working there, who individually and collectively
contribute to the achievement of its objectives’. Likewise, Flippo (1980) describes
HRM as the planning, organising, directing, controlling of procurement,
development, compensation, integration, maintenance and separation of human
resources towards the achievement of individual, organisational and social
objectives. Armstrong (1999, p.3) adds to the same that HRM is also concerned
with the conduct of relationships between management and the workforce.
Furthermore, Storey (1995); Buchanan and Huczynski (2004) suggest that HRM
emphasises on the strategic placement of a highly committed and capable
workforce, using an array of cultural, structural and personnel techniques; as well
as on the need to establish an integrated series of personnel policies to support
organisational strategy and achieve competitive advantage. Since every
organisation, regardless of its type is made up of people, acquiring their services,
developing their skills, motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment towards the organisation
is essential to achieve organisational objectives. (Decenzo and Robbins, 2010)
HRM can be categorised into two approaches; ‘Soft’ and ‘hard’. Hard HRM treats
people just like any other resource that has to be managed effectively and
emphasises on organisational needs rather than the needs of employees. On the
other hand, Soft HRM recognises the needs and wants of people and focuses on
nurturing and developing staff alongside employee training, motivation,
commitment and participation as a means of achieving corporate aims. (Storey,
1992; Beardwell and Claydon, 2007)
3.1 Purpose of Human Resource Management
The human resources department of a business is provided the responsibility to
equip the organisation with the necessary skills and talents; and assign the right
person to the right position according to their qualification so as to ensure
performance improvements. According to Graham (1978) the purpose of human
resource management is to ensure that the employees of an organisation are used
in an effective way so as to gain optimum benefit from their abilities while the
employees obtain both material and psychological rewards from their work. In other

words, HRM strives to maximise a company’s performance by investing in the right
people/providing a high return on a business’s investment on its people. HRM also
plays a considerable role in improving an organisation’s reputation. Fombrun and
Van Diel (2004) cited in Freidman (2009) suggest that Human Resource
Management indirectly improves corporate reputation. It focuses on actions such
as communication, training and compensation initiatives that build employee
competencies, motivation and organisational identification, that in turn positively
influences corporate reputation especially when employees then interact with
external stakeholders such as customers. Similarly, Lockwood (2004) also argues
that human capital is a critical value driver of corporate reputation. Therefore, by
partnering with senior management and implementing strategic human resource
practices HRM enhances reputation of an organisation.
Human Resource Management also strives to control budgets and minimise
excessive spending by developing methods to curb workforce management costs,
which includes negotiating better rates in return for benefits such as health care
coverage. Additionally, HRM studies the labour market, employment trends and
salaries based on job functions to ensure competitive and realistic wage-setting.
Such business budget controlling is crucial especially for smaller organisations.
Furthermore, an in-house human resource function instils the importance of human
capital to a company especially to organisations where employees perform cross-
functional duties. HRM strives to sustain or even enhance human capital value by
recruiting and selecting the most qualified and suitable applicants, and retaining
the most talented, well-motivated and committed employees (Parameswari and
Yugandhar; 2015). Picincu (2019) also agrees that the purpose of HRM is to attract
and engage highly skilled people who can add value to an organisation and support
its goal. HRM also ensures that the workforce embraces the company's philosophy
and business principles, thereby creating a cohesive work environment.
Conflict is inevitable in a workplace, given the diversity of personalities, work styles,
backgrounds and levels of experience among employees. HRM and its related
managers’/staff persons are specially trained to handle employee relations matters
by identifying and resolving conflict among the workforce and restoring positive
working relationships. Moreover, the HRM function develops succession planning
by identifying employees with the required capabilities and promise to eventually

transition to leadership roles within the company. This is vital for an organisation’s
stability and future success. (Parameswari and Yugandhar; 2015)
4.0 Functions of HRM
Workforce planning is a fundamental business process to align changing
organisational needs with people strategy, this involves identifying workforce
requirements and then designing strategies to meet those requirements. In other
words, workforce planning is the process of analysing, forecasting and planning
workforce supply and demand, the gap between the present and future workforce
needs; and then developing strategies to meet the gap so as to achieve
organisational missions, goals and strategic plans. The human resource
department accomplishes the process of workforce planning through its functions
which include recruitment, selection, training and development, performance
appraisal, compensation, employee relations and many more. (Bandaranayake,
2014)
According to Armstrong (2009) recruitment is the process of finding and engaging
people the organisation needs while selection is concerned with deciding which
candidate should be appointed to the job. Similarly, Branton and Gold (2007)
differentiates recruitment and selection by implying that “recruitment is the process
of generating a pool of capable people to apply for employment to an organisation.
Selection is the process by which managers and others use specific instruments
to choose from a pool of applicants a person or persons more likely to succeed in
the job, given management goals and legal requirements”. The process involves
identifying job vacancies and defining requirement related to qualification, skills
and work experience through job analysis; preparing job descriptions and
specifications; attracting candidates by advertising the job vacancies while
reviewing and evaluating alternative sources of applicants inside and outside the
company; shortlisting applicants and selecting the most suitable candidate after
interviews, tests, assessments and background verifications; then finally offering

employment after preparing necessary contracts. During the entire process of
recruitment and selection, human resource [HR] managers must ensure equal
employment opportunities without discrimination based on caste, creed, race, sex
and religion. Failure to do so shall invite legal action against such organisations.
(Mwaniki and Gathenya, 2015; Bandaranayake, 2014)
Another core function of HRM is training and development which involves
improving the skills and knowledge of current and future employees so that they
could perform their jobs effectively. In addition to providing training for new or
inexperienced employees, organisations may also provide training programmes for
experienced employees whose jobs are undergoing change. Large organisations
often have development programmes which prepare employees for higher level
responsibilities within the organisation. Various methods of training and
development could be used including on-the-job training, off-the job training, job
rotation, coaching, mentoring, workshops, conferences as well as vocational,
graduate and self-awareness training. Such training and development
programmes are useful to assure that employees are capable of performing their
jobs at acceptable levels. Moreover, it reduces wastage and increases quality of
output of an organisation while improving employee job satisfaction and motivation.
(Mathew, 2019; Bandaranayake, 2014)
The HR department also oversees the payment of compensation or remuneration
which is the fundamental duty of an employer. Compensation is essentially the
payment may by the employer to the employee for the work performed by the latter.
HRM develops, implements and maintains a system of payments which is fair both
internally and externally that fair wages or equal pay is made for equal work.
Compensation or remuneration is the basic motivating factor for any employee,
and acts as primary factor for retention of employees in an organisation. Unjust or
improper remuneration may trigger dissatisfaction and hurt organisational
performance and reputation. HRM provides a rational method for determining how
much employees should be paid for performing certain jobs. Moreover,
since compensation is a major cost to many organisations, it is a major
consideration in workforce planning. Compensation also affects staffing as people
are generally attracted to organisations offering a higher level of pay in exchange
for the work performed. It is also related to employee development as it provides

an important incentive in motivation employees to higher levels of job performance
and job positions in an organisation. (Saurabh, 2019)
Maintaining employee relations through sufficient communication systems and co-
partnership is one of the most important functions of HRM which also involves
interacting and negotiating with trade unions regarding wages, service conditions,
resolving disputes and grievances. Maintaining good labour relation is essential to
ensure productivity and smooth running of a business. It helps avoid conflict and
maintain peace and harmony within the organisation by reducing strikes and
providing fair deals to workers as well as establishing industrial democracy.
Unhealthy employee relations shall cause the moral and physical conditions of the
employees to suffer. (Bandaranayake, 2014; Saurabh, 2019)
4.1 Contribution of HRM functions to Dialog’s Objectives
The functions of HRM contribute greatly to the achievement of organisational
objectives. This is because the objectives of HRM are directly related to an
organisation’s mission and goals. (Picincu, 2019) Dialog Axiata operates with the
vision to be the undisputed leader in the provision of multi-sensory connectivity. It
also aims to create value, provide quality service as well as leading edge
technology unparalleled by any other (Dialog, 2020). In such a circumstance, the
HR department of Dialog would influence the achievement of the set objectives
through its functions relating to recruitment and selection, compensation, training
and development, performance appraisal and employee relations.
The recruitment and selection process in Dialog plays a key role in ensuring that
the organisation has a competent workforce by attracting and selecting candidates
with adequate skills, qualification and work experience. A talented workforce can
be used strategically to add value to the organisation. Besides, such employees
would also bring in fresh/innovative ideas within the business and may contribute
to the development of technological advancements that may be unmatched by the
competitors of dialog thus providing Dialog a competitive advantage over its rivals.
(Bianca, 2019)

As Dialog is a service organisation that operates in the telecommunication industry,
employees of Dialog will have direct contact with customers and would frequently
interact with them during customer inquiries, calls, sales promotional activities and
many more. In such circumstances, HR functions especially training and
development will help employees gain the necessary competencies and interactive
skills to provide high quality services and customer satisfaction. (Estalemi, 2000;
Estalemi and DeMaeyer, 2002; Heskett et al.,1997) cited in (Friedman, 2009).
Moreover, HR functions in Dialog such as compensation and training influence
employee motivation and overall behaviour that customers and the general public
observe and use to assess corporate reputation. Therefore, a justified
compensation and effective training scheme would boost the corporate reputation
of Dialog. Additionally, compensation schemes related to employee benefit
packages such as vacation days, flexible working arrangements or retirement plan
enhancements would assist Dialog to increase employee retention. (Bianca, 2019)
Furthermore, Dialog will be able to create value, enhance quality and improve
services by satisfying employees, compensating them while providing financial
benefits, conducting their appraisals, providing open communication systems and
accepting feedback within the organisation. Also maintaining good employee
relation within the organisation is a vital function HRM which enhances employee
job satisfaction and motivation. This would then boost employee loyalty, retention
and reduce employee turnover rates in Dialog. (Leghari et al. 2014)
4.2 Approaches to Recruitment and Selection
4.2.1 Recruitment Methods
Internal and External Recruitment
Internal recruitment involves an organisation filling a job vacancy within the
business from among its existing workforce through promotion or lateral transfer.
On the other hand, external recruitment is when the business looks to fill a job
vacancy in the organisation with any suitable candidate from outside the business
organisation. (Jonas, 2011)
Table 01: Strengths and Weaknesses of Internal Recruitment

Advantages Disadvantages
Boosts motivation and morale of
existing employees
New skills and ideas do not enter the
organisation
Minimises costs Morale problems for those not
promoted
Less time wastage Creates another vacancy which must
be filled
Organisations have better knowledge
about internal candidates
Limits number of potential applicants
Author developed (2020) based on Bandaranayake (2014)
Table 02: Strengths and Weaknesses of External Recruitment
Advantages Disadvantages
Brings in new ideas and skills Longer process; time consuming
Large pool of workers to choose from Costly
People may have a wider range of
experience
Less opportunities for promotion and
development
Author developed (2020) based on Mathew (2019)
There are a number of pros and cons of hiring both external candidates and looking
inside a company’s existing talent pool. Primarily, internal recruitment is likely to
be cheaper than external recruitment. External recruitment involves costs of
advertising the job vacancy in newspapers, specialist publications or online.; as
well as costs related to conducting interviews, assessments and tests along with
providing induction training and many more. Internal recruitment eliminates the
need for such costs and Dialog could invest such cost savings in other functions
such as value creation and towards achieving other organisational objectives.
(Jones, 2011) Moreover, elimination of additional training such as induction also
saves time and makes the process quicker because internal recruits tend to be
familiar with company policies and working practices. Organisations would not
need to spend time conducting background checks of external candidates for
during internal recruitment, the management would already know the strengths and
weaknesses of internal candidates which facilitates quick decision making on who

is right to fill the vacant position. Unlike this, the process of external recruitment
would be much longer and time consuming due to the tedious process of attracting
and selecting suitable candidates alongside the time taken by newbies to adapt to
organisations and work environments. Such time wastage could interrupt the
production process in a business and especially organisations such as Dialog
operating in the service sector cannot afford to keep job positions vacant for too
long (especially positions that involves interacting with employees often) and as a
result would consider time very important and strive to eradicate time wastage as
much as possible so as to provide quality services to its users. Furthermore, unlike
external recruitment which can have a demotivating effect on existing employees
who are not offered the chance of promotion/development, internal recruitment
provides organisations with the opportunity to promote and develop their
employees. Such actions boost the morale and motivation of employees and
incentivises them to work harder towards promotions thereby having a positive
effect on their performance as well as employee, loyalty and retention. Therefore,
by promoting existing employees to vacant positions within the organisation, Dialog
could gain positive long-term outcomes in terms of increasing productivity and
profitability. (Marcouse, Hammond and Watson, 2015)
On the other hand, external recruitment also has its advantages over internal
recruitment. For instance, while organisations relying on existing employees will
face stagnation of ideas and approaches within the business after some time; and
be restricted to its existing pool of employees during recruitment, external
recruitment provides employers with a large pool of qualified and experience
candidates to choose from. Additionally, external candidates may be more
experienced, qualified and talented and would also bring in fresh ideas,
new/innovative skills and techniques which is especially significant in creative or
technical industries like the telecommunication industry that Dialog operates in
where businesses need to keep up with and become more competitive to survive.
In most situations, candidates may already have the skills required to perform the
job in question, avoiding the need for and cost of training. Moving on, internal
recruitment may cause morale problems and conflicts between employees if one
of them is promoted while other are not. This could disrupt employee relations and

the working environment. Besides, transferring an employee from one position to
another creates another vacancy elsewhere which must be filled. Such issues may
be avoided through external environment and employee motivation would also
improve when working under new and more experienced managers and
supervisors. (Marcouse, Hammond and Watson, 2015; Jonas, 2011) Likewise, it
must be kept in mind that these pros and cons are not fixed. It may differ according
to different circumstances. For instance, internal recruits may still require a certain
amount of training to be able to do their new job efficiently which may incur costs
to the business. Conversely, an organisations as large as Dialog may be able to
attract candidates from different departments or subsidiaries, thereby expanding
the range of employees to choose from during internal recruitment. This also allows
for the sharing of skills and knowledge from other areas and such employees may
be able to look at a problem from multiple perspectives and come up with
effective/innovative solutions. (Jones, 2017)
In deciding whether to hire from within or outside the organisation, employers
should consider the nature and level of the job, characteristics of the firm and
industry, and a firm’s system of HRM policies. Internal recruitment may be
preferred to external hiring when knowledge and skills specific to the firm are
important, when promotions are crucial for motivating current workers, when the
costs of a hiring mistake are particularly large, and when an additional vacancy
(created when a worker switches jobs internally) is not too costly. For instance,
Dialog may choose to appoint one of its existing employees to a vacant position so
as to preserve confidential information and technical know-hows within the
business. Organisations may also prefer internal recruitment if they have a small
budget to hire, on board, and train new talent; high potentials eager and ready to
take the next step; the skills needed are already available within the existing talent
pool or when they are in a time crunch to fill an important position. In contrast,
external recruitment may be suitable in situations where organisations are looking
to expand its operations and workforce; to bring in fresh, new perspectives and
improve diversity; or when a change in direction or mentality is needed. (DeVaro,
2016)

4.2.2 Selection Methods
Once organisations attract potential candidates, they then have to select the most
suitable candidate for the job position in consideration from amongst the pool of
applicants. Organisations may choose from a number of selection techniques,
namely, interviews, tests and assessments. (Marcouse, Hammond and Watson,
2015)
Interviews
An interview is essentially a formal meeting/procedure designed to obtain
information from interviewees responses to questions asked by one or more
interviewers. (Reddy, 2019) The purpose of a job interview is to get a clear
impression of what the candidate is actually like, in person and in comparison to
what is mentioned in their resume or CV. (Sisk, 2018)
Table 03: Advantages and Disadvantages of Interviews
Advantages Disadvantages
Provides first-hand information on the
individual
Vulnerable to interviewer bias
Helps gain a better idea of the
individual
First impressions could be wrong
Can thoroughly assess the individual Candidates could rehearse answers
Is relatively cheaper Interview results could be unreliable
Author Developed (2020) based on Reddy (2019)
Interviews allows organisations to gain a more accurate perception of an
applicant’s personality, poise, interpersonal skills as well as their knowledge and
experience related to the job/field in consideration, especially in the context of
discussing business and the type of work a successful candidate would have to
perform. The stress of the situation also helps understand the individual’s ability to
perform under pressure which would be a crucial factor organisations look for when
operating in a fast moving, rapidly changing and unpredictable business
environment such as the telecommunication industry. Further, organisations can

determine how serious an applicant is about the job in question as well as his/her
attitude and genuine interest towards the job and company by assessing how well
an individual has prepared for the interview. Selecting employees with genuine
interest towards a job and company can have positive influences in the
performance of the organisation as well as employee turnover rates, Moreover,
other cues such as body language, facial expressions and other nonverbal cues
gives more information about the person’s true intent and helps assess how the
person fits in with the environment and culture of a business. This ensures that
organisations only select candidates who fit in with the culture and environment of
the organisation thereby preventing any misfits, disruptions or conflicts within the
organisation which can further affect performance and profitability of the business.
(Sisk, 2018)
On the other hand, interviews may also pose certain drawbacks. Interviews may
be prone to interviewer bias or prejudice. Applicants may be discriminated by
interviewers on the basis of age, race, gender and other key aspects of a
candidate’s identity. Such actions tend to be illegal and can cause cost serious
consequences to an organisation. Additionally, first impressions could be very
wrong. Unforeseen events and changes could portray individuals differently than
they actually are. Moreover, interviewers may analyse an individual incorrectly
based on their gut feeling or may deem an applicant unfit within a few minutes into
the interview if they form a wrong first impression of a candidate. Such activities
may cause an organisation to miss out on an employee who may be perfect for the
job vacancy unless given another chance or looked at with a different perspective.
Furthermore, some undesirable personality traits may be easily masked with a
warm personality, some eye contact and a strong sense of confidence. Certain
applicants may agree with opinions and mimic back the answer the interviewer
wants to hear. But in effect they may merely be putting on a performance and the
reality may well be quite different. Candidate may also portray strong interpersonal
and communications skills and yet be a weak fit for the company’s needs. It may
very difficult to uncover such traits in a time restricted conversation, even if it is run
by an attentive interviewer. Therefore, in the process organisations may select an
individual that may be a misfit to the job position thereby disrupting the

performance, productivity and profitability of an organisation. (Marcouse,
Hammond and Watson, 2015)
Table 04: Types of Interviews
Panel interview Is where instead of a single interviewer, a group of
interviewers (Probably from different departments) conduct
the interview together
Situational
interview
Is where the interviewer presents a scenario to the
candidate and expects the candidate to provide proper
solutions and an alternative methods or further
suggestions to the question
Structural interview Is where all applicants are interviewed with as a standard
set of questions to which answers may be already set
Group interview Is where the interviewer asks the same questions openly,
to a group of candidates, allowing them the chance to
compete to impress.
Author developed (2020) based on Wilkinson (2020)
Tests
A test is any job-related criterion used to screen candidates to determine whether
they are properly qualified for a position. Organisations may perform a variety of
tests including; skill tests, personality tests and drug tests
Table 05: Advantages and Disadvantages of Tests
Advantages Disadvantages
Objective assessment Certain tests may be demoralising
Uniform basis Can be unreliable
Selection of better persons Only measures job related knowledge
Saves time
Author developed (2020) based on Marcouse, Hammond and Watson, 2015)
Tests help organisations judge the present and potential ability of individuals and
find the most suitable candidate for the job in consideration. Moreover, while

interviews may be subjective, tests on the other hand judges an individual’s ability
to perform a certain job through practical and objective means, by matching
requirements of the job with practical knowledge of the candidates and are not
based on personal judgements and bias. Tests tend to be standardised and an
individual is selected solely on the basis of success in the tests. Tests also help
evaluate certain skills such typing speed, written communication or problem-
solving which may be significant for employees working in the service or
telecommunication industry. Furthermore, whereas interviews could be time
consuming and exhausting for both the interviewer and candidate, tests allow
organisations to save time and money by interviewing only the candidates who
pass the tests. such precious time could be utilised to improve the performance
and quality of the services provided by an organisation.
In contrast, tests may possess certain limitations. For instance, some tests, such
as a lie detection test may demoralise candidates. This may result in otherwise
suitable candidates to not appear for tests. organisations may as a result may lose
out on competent employees who may add to the performance of the organisation.
Moreover, tests and results produced by tests may not be the most suitable method
of selection as they tend to be unreliable and inaccurate. Tests may usually only
measure a handful of traits and are good at assessing job specific knowledge.
Some candidates may not perform very well in the tests but may still be suitable
for the job in question. The unique skills, abilities and personalities of candidates
may not be considered or thoroughly examined by certain test methods. Therefore,
organisations may miss out on innovative employees with fresh new ideas that can
help their business prosper especially on the technical field. Further, as people
tend to present themselves in the best possible light candidates may occasionally
fake their answers especially in an integrity and work ethics test. Such inaccurate
information may lead to an organisation selecting an unsuitable applicant who may
be negatively affect the performance of the business (Caldwell, 2018)
Table 06: Types of tests
Skill Tests measures the individual’s ability to perform certain tasks
Personality Tests used to provide insight on personality traits that may help
or hurt an organisation

Drug tests used to measure presence of illegal drugs or controlled
substances in urine
Author developed (2020) based on Caldwell (2018)
Assessment Centres
Assessment centres involve, candidates applying for the same position assembling
in one place and participating in a variety of different tests. The main purpose of
conducting an assessment centre is to analyse how candidates act in typical
management situations. It provides an opportunity for candidates to showcase
their suitability for a role in different ways and enables them to obtain a practical
preview of what the employer expects from their employees. (Tripathi, 2016)
Table 07: Advantages and Disadvantages of Assessment Centres
Advantages Disadvantages
Allows to asses managerial abilities of
applicants
Costly
Provides fair opportunities Time consuming
Reliable and valid Difficult to develop and manage
Assessment centres provide organisations with objective, uniform information
about employees' managerial abilities. As candidates perform the various tasks
that are actually found in the role for which they are being assessed, these ‘real
life’ exercises can provide a more accurate indicator of a candidate’s probable
future performance, thereby data provided by this method tends to be more reliable
and valid in comparison to other selection methods. By observing the candidates
in multiple simulations, organisations will be able to make an effective decision
which helps them to recruit the right candidates for the right. Moreover,assessment
centres also enhance the knowledge of the participants and boosts their thinking
procedure while improving their efficiency at work. All applicants are provided a fair
opportunity to be selected by displaying their skills in exercises that are more
representative of the target job rather than a written test or situational interview.
This ensures that organisations do not overlook the unique abilities of all
candidates and miss out on capable employees.

On the other hand, assessment centres may pose certain disadvantages to an
organisation. For instance, assessment centres can be quite costly in comparison
to tests and interviews. Costs related to labour, physical space and
accommodation of employees, training of assessors and development of suitable
materials may be much higher than the benefit in returns. Such high costs may
take a toll on company profitability. Moreover, as assessment centres conduct
multiple exercises to assess the candidate and select the most suitable individual,
the process could be highly time consuming and may consume a lot of productive
time of employees which can be utilized in other constructive areas. The higher the
position of the job in question in an organisation, the more time-consuming the
assessment process can be. Time wastage may once again be costly to an
organisation as it misses out on production time and therefore productivity and
profitability. Furthermore, assessment centres could be very difficult to manage due
to the large number of staff required to conduct an assessment centre in addition
to the number of applicants present. At the same time, assessment centres tend
to be very complex procedures that often difficult to develop especially due to the
multiple assessors required, typically from upper management, HR, or from outside
the organisation. (Tripathi, 2016)
Table 08: Types of Assessment Centres
In-basket exercise Is where the candidate is placed in the role of
manager of an imaginary organisation in an
attempt to create a realistic scenario of the
situations and problems encountered by
managers so as to assess how he/she acts in
response
Leaderless group discussion Is where candidates participate in a group
discussion about a job problem. Each of them is
then rated on characteristics such as verbal
ability, persuasiveness and inter-personal skills
Management games These measure technical skills of candidates

Individual presentations Candidates are asked to make a presentation on
a specific topic through which their
communication skills, persuasiveness and poise
is measured
Author developed (2020) based on Akrani (2011)
5.0 Impact of training, performance appraisal and compensation
5.1 Benefit of training, performance appraisal and compensation on
employees and employers
Training
Training and development is one of the most important functions of HRM. Such
training and development programs have optimistic consequences on employees
as well as on the employer. Employees on one hand gain a number of benefits
from employee training and development programs. They are able to learn soft and
technical skills required by their jobs. Training also helps employees to survive in
the future and develop their abilities and talents to cope with new technologies and
current requirements of market. Staying up to date with their skills allows
employees to sustain their employment, gain promotions as well as increase their
salaries. Moreover, the provision of training programmes and helping employees
to improve their skills and knowledge to cope with future requirements, shows
that’s organisations value their employees. This along with the confidence of
competencies gained through training programmes lead to employee satisfaction.
Furthermore, training programmes allows employees to enhance their job-related
performance. (Bashir, 2013)
On the other hand, employee training programs are essentials for organisations to
stay competitive in the market.Though expensive, training helps organisations
expand their knowledge and competitive ability and can also lead to higher
revenues through increases in employee performance. Moreover, as training
programmes enhances employee satisfaction and performance, this indirectly
contributes to organisational effectiveness and performance. Further, the

opportunity provided by organisations to employees to improve their learning helps
retain employees within the organisation. This is because training programmes
make employees feel valued by the business and as a result feel comfortable and
loyal towards the organisation thereby reducing turnover rates. (Bashir, 2013)
Performance appraisals
Performance appraisal involves measuring employee’s actual performance with
company pre-set standards and providing feedback to the employees regarding
the same so as to help them eliminate performance inefficiencies. Performance
appraisals benefit both the employee and employee. Firstly, it helps assess the
strengths and weaknesses of an employee and identify/reach their true potentials
and interests. Employees could use such feedback to improve their strengths and
managers may suggest ideas and methods to overcome their weaknesses. As
employees are then provided with training to overcome their weaknesses and
develop their strengths, this facilitates the acquisition of new skills and aids them
in personal and career development. Moreover, as performance appraisal involves
acknowledging and rewarding employee efforts and performance in the form of
higher salaries, responsibilities, certificates and other monetary and non-monetary
benefits; this boosts the morale and confidence of the employees and motivates
them to perform better. (Samriya, 2019)
Additionally, performance appraisals systems benefit the employer as well. For
instance, as performance appraisal systems motivate employees to perform better,
this boosts the overall performance and effectiveness of the organisation as a
whole. Moreover, the assessments of strengths and weaknesses of employees
helps employers to plan and design training programmes accordingly and modify
the programmes to meet human resource requirements. It also helps identify
talented employees and provides insights to the quality of human resource
available within the organisation. Employers could use such data to plan and
develop human resource requirements for the future. Further, fair promotion and
transfer policies of employees improve relationships between workers and the
management thereby promoting a peaceful work atmosphere free of conflicts and

disruptions which directly benefits the performance and output of the business.
(Flaniken, 2009)
Compensation
Compensation includes wages, salaries, bonuses and commission structures
payed by employers to employees for the work they perform. Proper compensation
policies boost the morale and motivation of employees as they feel valued by the
organisation. Additionally, the provision of bonuses and commissions by
organisations further motivates employees to perform their very best. Moreover,
right compensation plans that includes other benefits such as profit sharing,
holidays along with other bonuses as well. This gives employees a stronger sense
of satisfaction as they feel appreciated by the company. Employer’s on the other
hand can also benefit from compensation. For instance, providing competitive
compensation plans and benefit packages helps organisations attract the most
talent employees to the business among the workforce in the market as people are
looking to put themselves in the best possible financial position. Such experienced
and qualified employees could enhance the performance of an organisation.
Moreover, the increase in motivation and satisfaction shown by employees due to
the beneficial compensation plans provided ensures that employees remain loyal
to the business. This happens because employees feel highly valued and
appreciated and thus retain in the organisation. As a result, labour turnover will
reduce significantly. When employees don’t leave the organisation in a short span
of time, employers do not have to spend too much recruiting and training new
employees to fill in vacancies. Furthermore, motivated and satisfied employees
tend to be more effective, efficient and productive and these could have positive
effects on output. Therefore, the overall profitability and productivity of
organisations is improved. (Leonard, 2019)
5.2 Influence of training, performance appraisal and compensation on
productivity and profitability

According to Arthur (1990), implementation of HR policies and practices such as
training and development, performance appraisal and compensation have
substantial impact on an organisation’s performance in terms of productivity and
profitability. Similarly, Huselid (1995) also implies that productivity is influenced by
employee motivation while financial performance is influenced by employee skills,
motivation and organizational structure. For instance, training, performance
appraisal systems and compensation have significant impacts on motivation,
training ensures that organisations have the necessary skill levels or competencies
to perform a particular job and also ensures that their skills are improved to meet
future market requirements. performance appraisal also works towards identifying
the strengths and weaknesses of employees as well as providing feedback as well
as training to develop their strengths and overcome their weaknesses.
Compensation in contrast ensures that employees receive appropriate payment
plans along with additional benefits such as profit sharing, bonuses and vacations.
Such activities of training, compensation and performance appraisal makes
employees feel valued by the organisation, thus boosting their morale, motivation
and satisfaction. This improves their performance and productivity as they are
more motivated to perform their jobs while the increase in output improves financial
performance of the organisations. Additionally, this also increases loyalty of
employees towards an organisation as they feel more comfortable with the
business. Increase in loyalty means that employees will retain with the organisation
for long periods of time. This reduction in labour turnover allows organisations to
save up on costs related to recruiting, selecting, training new employees to fill job
vacancies. Costs saving may therefore affect profitability positively. (Mwaniki and
Gathenya, 2015)
Moreover, training programmes allow employees to extend their skill levels, this
new found competencies help employees to perform their jobs faster with less or
no mistakes as well as use new technology and machinery that are more efficient
in production. The reduction in wastage of time and resources as well as increase
in efficiency positively impacts output levels or productivity. Such changes also
reduce costs incurred by organisations in the long run thereby increasing
profitability. In addition, well trained employees interact with customers effectively
thereby enhancing customer satisfaction. This may lead to increases in demand

for company’s products/services, sales revenues and therefore profitability.
Furthermore, promotions and appraisals provided to employees through
performance appraisal systems not only motivates the employees receiving them
to work harder but also motivates employees around the organisation to perform
better so as to gain such benefits and appraisals, increase in employee
performance therefore increases productivity and profitability. Performance
appraisal systems also helps identify employees who may not be performing to the
mark, organisations may save costs by laying off such workers. Further, effective
compensation schemes such as bonuses and commissions will drive employees
to work harder to receive them, increasing productivity and profitability in the
process. Attractive and competitive compensation schemes also allow
organisations to attract qualified and talented employees who will add to the
productivity and profitability of the company. Besides, effective communication
skills can allow organisations to negotiate better rates in return for non-financial
benefits such as healthcare, insurance and may more. These actions may save
costs to the organisation and benefit financial performance. (Parameswari and
Yugandhar, 2015)
6.0 Influence of employee relations
Maintaining healthy employee relations contribute to the success of the
organisation. It also assists in HR decision making and objective achievement.
There may be a number of aspects to employee relations including celebrations,
recognition and acknowledgment of employees, open communication, providing
feedback, grievance handling and many more. Such employee relation methods
can also have a number of benefits. For instance, contributing to and celebrating
the occasions of employees such as birthdays, weddings and funerals makes
employees feel valued and appreciated by the organisation. They feel respected,
connected and comfortable with the management. This makes them more loyal to
the business and makes employees retain with the organisation for long periods of
time. Moreover, encouraging open communication and feedback among
employers and employees may benefit the success of the organisation greatly.
Involving employees in the decision making process and listening to their ideas,

queries, problems and contributions and considering their suggestions fosters a
feeling of trust and appreciation among the employees and employer and makes
employees feel heard and important. This empowers employees and enhances
employee engagement and morale while motivating them to work together with the
organisation in the long run. Good communication and understanding between
employees and employers is essential to reduce industrial disputes and conflicts.
Furthermore, recognising and acknowledging the skills, improvements, strengths
and contributions of employees motivating them to overcome their weaknesses
and perform better makes employees feel comfortable with the organisation. They
also may feel motivates to perform their jobs and enhances job satisfaction. Such
actions may reduce employee absenteeism and turnover rates as well as boost
employee retention and loyalty. Additionally, providing employees with pleasant
environment which includes leisure activities, canteens, good ventilation and
lighting will have a beneficial effect on the loyalty of employees, encouraging a
loyal workforce. Companies with such a workforce will be able to improve
employee retention. Essentially, when employees feel valued and satisfied, they
tend to be happy and productive. They would put in more efforts which translates
into satisfied customers and more revenue. (Aikhuele, 2018)
7.0 Employment Legislations
Shop and Office Act
The Sri Lankan Shop and Office Act regulates employment, hours of work and
remuneration of persons in shop and offices, and for matters connected therewith
or incidental thereto. It states that employee working hours should not exceed eight
hours in one day and forty-five hours in a week without including any interval
allowed for rest or for a meal. However, all persons must be provided one
continuous period without any interruption other than such interval for rest or for a
meal. It also prescribes the conditions and periods for overtime of employees.
Additionally, it also states that every person employed in or about the business
shall, in respect of each week, be allowed one whole day and one half-holiday.
Such holidays shall be so allowed with full remuneration if such person has worked
for not less than twenty-eight hours, exclusive of any period of overtime work,
during that week. It also includes regulations regarding annual and public holidays.

(International Labour Organisation, 2020) Such regulations must be abided by
organisations. The HR function of organisations have to make decisions relating to
working hours, remuneration and holidays considering the regulations prescribed
by the Shop and Office Act.
Minimum Wage Act
The National Minimum Wage Act of Sri Lanka provides regulations regarding the
payment of national minimum wage by employers to workers and for matters
connected therewith or incidental thereto. The Act states that no employer should
pay their employees below the national minimum monthly wage for all employees
in an industry or service which must be ten thousand rupees and the national
minimum daily wage of a worker which must be four hundred rupees. (International
Labour Organisation, 2020) The HR function of organisations must therefore keep
such guidelines in mind when remunerating it employees. This act may also affect
the budget control of HRM as it related to finance. HR managers may have to
restrict the number of employees recruited to manage budgets provided.
Factories Ordinance Act
The Factories Ordinance Act of Sri Lankamakes provision for the safety and
welfare of workers in factories. This act provides guidelines to concerns related to
cleanliness of the workspace, overcrowding of employees, temperature and
ventilation of the working environment, lighting of work area, drainage of floors,
sanitary conditions as well as provision of medical care. It also prescribes
regulations related to the safety and maintenance of equipment, tools,
machineries, products along with the provision of work gear to ensure the
protection of employees within the organisation. Additionally, it includes the
necessary precautions to be taken within the work environment to ensure the
maximum health and safety of employees. (International Labour Organisation,
2020) The HRM function of organisations must follow such guidelines and
precautions within the environment so as to ensure the health and safety of their

employees. Such precaution will again influence HR decision making, budgets and
priorities.
Employment of Women, Young Persons, and Children Act
This Act regulates the employment of women, young persons, and children within
an organisation. The act states that no person shall employ a person under the
age of eighteen years, at any time during the night, in a public or private industrial
undertaking or in a branch. It also includes that no woman shall be compelled to
work at night against her will but if she does actually work overtime, there shall be
a female warden appointed to see to the welfare of woman workers who work at
night. It also includes the guidelines related to remuneration of overtime as well as
rest periods of women and young persons. The act also prescribes that no person
shall employ a child in a public or private industrial undertaking or in a branch
thereof. Moreover, it provides regulations related to prohibition against persons
under eighteen years of age taking part in performances endangering life or limb;
restrictions on training for performances of a dangerous nature; andprohibition
against persons under eighteen years of age being employed in hazardous
occupations. (International Labour Organisation, 2020) The HR function of
organisations will have to keep such guidelines and measures when making
decisions related to recruitment, selection, training, compensation of especially
young persons and women within the organisation. HR mangers will have to adapt
to such Acts in order to survive in the industry.
8.0 Job Description and Job Specification
Job description
JOB DESRIPTION- DIALOG AXIATA PLC
Job Title: Human Resource Manager
Department: Human Resource Department
Salary: LKR 150000
Report to: Human Resource Director

General summary:
The HR Manager is responsible for employment practices and processes, for
administering payroll and compensation and appreciation schemes and for
managing safety measures in the workplace. In addition to overseeing employee-
benefit programmes, the position of HR Manager includes identifying, screening,
interviewing potential work candidates and designing training and development
plans for all workers.
Duties and responsibilities:
• Managing business workers, and organizing and encouraging the recruiting
process;
• On boarding newcomers to the company
• Determining acceptable wages and remuneration
• Provide the required support structures for payroll requirements
• Creation of appropriate induction and preparation
• Conduction effective training and development programmes
• Supporting opportunities for career advancement of workers
• Managing Workforce Succession Planning
• Assisting the performance monitoring and evaluation process
Job specification
JOB SPECIFICATION OF DIALOG AXIATA PLC
Job Title: Human Resource Manager
Department: Human Resource Department
Reports to: Human Resource Director
Education qualification
• A minimum Bachelor’s degree or equivalent in Human Resources or
Business would be necessary (Master’s degree is preferred)

Experience
• 4+ years’ experience as an HR manger or any other HR executive levels
• Should have good physique with minimum 5.2 height and weight 65kg
Personal skills and special attributes
• Confidence
• Technical skills
• Leadership and interpersonal skills
• Problem solving skills
• IT and numerical skills
• Effective communication skills
• Fluency in all three languages (English, Sinhala, Tamil)
• In depth knowledge of labor laws and HR practices
8.1 Influence of Job description and Job Specification On HR functions
Job description list out the job title, tasks, duties, roles and responsibilities, with
respect to the particular job while job specification is concerned with the listing of
the individual’s qualification, skills, and abilities, that are needed to perform the job
efficiently. The job description [JD] and job specification [JS] helps with the
functions of HR concerning recruitment and selection, training and development as
well as compensation. For instance, during recruitment and selection, the JD and
JS helps the HR manager to hire the most suitable applicant who fulfils all the
criterions of the job description and job specification. They must possess all the
qualifications and skills required by the job specification. Moreover, the job
description also allows organisations to attract serious applicants who are willing
to perform the duties and carry the responsibilities advocated by the JD. Further,
the JD and JS also helps organisations to identify the training requirements and
skills that the employees must develop so as to perform their job efficiently by
looking at the duties and responsibilities that the employee has to perform in a

certain position. Additionally, when employees are promoted or transferred to a
different job position, the HR function of an organisation or the HR manager can
identify what training must be provided to the employee so that they can perform
their new job effectively. In addition, HR managers may make compensation
decisions on the basis of JD and JS. By looking at the position, skills, qualifications
as well as the duties and responsibilities demanded by the job position, HR
mangers can comprehend how much to pay for the particular job position or
employee. (Jones, 2011)
9.0 Conclusion
Firstly, the author explains the purpose and scope of Human Resource
Management in terms of resourcing an organisation with talent and skills
appropriate. Secondly, the effectiveness of the key elements of Human Resource
Management in an organisation is evaluated. Moving on, the author analyses the
internal and external factors that affect Human Resource Management decision-
making, including employment legislation. Finally, the Human Resource
Management practices in a work-related context is applied.

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