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Programmetitle HND in Business Management

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Assignmenttitle Human Resource Management

Student’sname Nehari Senanayake

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Higher Nationals - SummativeAssignmentFeedbackForm

StudentName/ID Nehari Senanayake

UnitTitle Human Resource Management

AssignmentNumber Assessor
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ubmission
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ssion
AssessorFeedback:
LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an
organisation with talent and skills appropriate to fulfil business functions.
Pass, Merit & P1 P2 M1 M2 D1
Distinction Descripts

LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organisation.
Pass, Merit & P3 P4 M3 D2
Distinction Descripts

LO3 Analyse internal and external factors that affect Human Resource Management decision-
making, including employment legislation

Pass, Merit & P5 P6 M4 D3

Distinction Descripts
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 Pearson
Higher Nationals in
Business

Unit03: Human Resource Management

Assignment 01

Student Name /ID Number Nehari Senanayake

Unit Number and Title Unit 03–Human Resource Management

Academic Year 2017/18

Unit Tutor

Assignment Title HR Case Study Review

Issue Date

Submission Date

IV Name & Date

Submission Format:
The submission is in the form of an individual written report. This should be written in a concise, formal
business style using single spacing and font size 12. You are required to make use of headings, paragraphs
and subsections as appropriate, and all work must be supported with research and referenced using the
Harvard referencing system. The recommended word limit is 2,000–2,500 words, although you will not
be penalised for exceeding the total word limit.

Assignment Brief

Unit Learning Outcomes:

LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an
organisation with talent and skills appropriate to fulfil business functions.

LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an organisation.
LO3Analyse internal and external factors that affect Human Resource Management decision-making,
including employment legislation.

Assignment Brief and Guidance:

Scenario:
As a newly appointed management trainee of a Sri Lankanorganization (you have to select an
organisation of your choice), you have been tasked with helping the senior management on the
restructuring of the department as part of an organizational change.
-------------------------------------------------------------------------------------------------------------------------------
----------
The Human Resources (HR) department will be restructured based on the findings of a review report,
which you have been asked to complete. You are to review the effectiveness of the HR function within
the organisation, researching the role and scope of HR and reviewing and assessing the main HR
functions within the organisation. This has to be submitted as a case study report on how HRM functions
are applicable to workforce planning and resourcing in the organsation. Also the report should identify
the approaches used for recruitment and selection and evaluate the mentioned approaches.

The case study assessment report should cover the followings;

An overview of the organisation.

1. An explanation on the purpose of the HR function and the key roles and responsibilities of the HR
function.
2. An assessment of the approach to workforce planning, recruitment and selection, development and
training, performance management and reward systems.
3. The approach to and effectiveness of employee relations and employee engagement, and comment
on the adoption of flexible organization and flexible working practice and ‘employer of choice’.
4. Key areas of employment legislation within which the organization must work.
Grading Rubric

Grading Criteria Achieved Feedback

P1 Explain the purpose and the

functions of HRM, applicable to
workforce planning and resourcing an
organisation.

P2 Explain the strengths and

weaknesses of different approaches to
recruitment and selection.

P3 Explain the benefits of different

HRM practices within an organisation
for both the employer and employee.

P4 Evaluate the effectiveness of

different HRM practices in terms of
raising organizational profit and
productivity.

P5 Analyse the importance of

employee relations in respect to
influencing HRM decisionmaking.

P6 Identify the key elements of

employment legislation and the
impact it has upon HRM decision
making.

M1 Assess how thefunctions of

HRM canprovide talent and
skillsappropriate to fulfilbusiness
objectives

M2 Evaluate the strengths and

weaknesses of
different approaches to recruitment
and selection

M3 Explore the different methods

used in HRM practices, providing

Human Resource Management – Nehari SenanaykePage 8

 specific examples to support
evaluation within an organisational
context.

M4 Evaluate the key aspects of

employee
relations management and
employment legislation that affect
HRM decision-making in an
organisational context.
D1Critically evaluate the
effectiveness of the recruitment and
selection techniques in two
organsiations.
D2 Critically evaluate HRM practices
and application within an
organisational context, using a range
of specific examples.
D3 Critically evaluate employee
relations and the application of HRM
practices that inform and influence
decision-making in an organisational
context

Human Resource Management – Nehari SenanaykePage 9

The report provides details about the John Keels Holdings (JKH) and human
resource management of the company. How JKH is struggling with the current
situations and suggestions on those practices in related with how company is going
to achieve overall objectives.

Presented to 
Board of Directors
John Keels Holdings
Sri Lanka.

Presented By
S P N Senanayake
Human Resource Manager
John Keels Holdings.

July 25 th, 2018

Human Resource Management – Nehari SenanaykePage 10

Acknowledgement.

In performing my assignment, I had to take the help and guideline of some respected
person, who deserve my greatest gratitude. The completion of this assignment gives me
much pleasure. A special gratitude is given to Miss. Gayathri Senanayke for her guidance
when doing my project. I would also like to expand my deepest gratitude to all those who
have directly and indirectly guided me in writing this assignment.

Human Resource Management – Nehari SenanaykePage 11

Table of content…

1.0 HR functions and the key roles and responsibilities of the HR functions...........................7
2.0 Different approaches in recruitment and selection........................................................9
Recruitment..........................................................................................................................9
Selection..............................................................................................................................9
2.1 Approaches of recruitment............................................................................................9
2.2 Approaches of Selection..............................................................................................11
Strengths and weaknesses of recruitment approaches.......................................................11
2.3 Reward schemes and management..............................................................................13
2.3.1 The link between motivational theory and reward...................................................14
3.0 How those practices facilitate the profit achieving process & productivity of john
keels...................................................................................................................................15
3.1 Examples to different methods used in HRM practices & how they support evaluation
within an organizational context........................................................................................16
3.2 HRM practices and application within an organizational context, using a range of
specific examples...............................................................................................................17
3.3 Employee relations and impact on decision making process......................................20
4.0 Elements of employee legislation................................................................................21
4.1 Employee relations with HRM practices on decision making.....................................24

List of Tables and Figures

Human Resource Management – Nehari SenanaykePage 12

Table 2.2.1 - Strengths and weaknesses of recruitment approaches........................................12
Table 2.2.2 - Strengths and weaknesses of selection approaches......................................12
Figure2.3.1 - Employee Reward Management and Practice....................................................13
Figure2.3.1.1 the process of motivation (Michael Armstrong)................................................14
Figure 3.2.1- The employees’ competencies, capabilities and experience..............................17
Figure 3.2.2– Total training hours of employees.....................................................................19

Human Resource Management – Nehari SenanaykePage 13

Introduction
Company Overview
History
John Keels Holdings (JKH) origins lie in a produce and exchange broking business
founded by two Englishmen, Edwin and George John, in Colombo, Ceylon, in the early
1870s. “E. John & Co.” was one of a handful of broking companies that helped build tea
production and export into the mainstay of the colonial Ceylonese economy.
In 1948, the year of Ceylon's Independence, “E. John & Co.” merged with two London-
based broking companies to form the private limited company of “E. John, Thompson,
White & Co. Ltd.”. Business opportunities in a fledgling post-Independence economy
spurred growth and expansion throughout the 1950s and 1960s. Our name “John Keells”
which is now synonymous with Sri Lankan business leadership came into existence
following the acquisition of another Colombo broking company, “Keell&Waldock Ltd.”,
in 1960, the resulting entity being named John Keell Thompson White Ltd.
As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political
change helped drive John Keells' expansion and diversification. The growing economic
importance of travel and tourism was reflected in the acquisition of Walkers Tours &
Travels, the leading inbound tour company of the time, and the Mackinnons' Group,
which had extensive interests in shipping. Thus began a process of diversification that has
resulted in today's 70-member conglomerate. The parent firm, now known as John Keells
PLC (formerly John Keells Limited), became a public quoted company in 1974.
In October 1986, a newly incorporated John Keells Holdings Ltd. acquired a controlling
stake in John Keells Limited and obtained a quotation on the Colombo Stock Exchange
amidst a heavily over-subscribed public share issue.
1. Products
2. Consumer foods and retail
3. Financial services
4. Information technology and innovations
5. Property
6. Leisure
7. Plantation Services
8. Transportation

Vision
“To provide the best client experience in the BPO industry.”

Mission
“As a premium quality service provider, our mission is to excel at creating tangible value
for our clients by anticipating and understanding their needs and by providing superior
insight into the improvement of their business performance”.

Human Resource Management – Nehari SenanaykePage 14

Corporate Values
1. Innovation: Changing constantly, re-inventing and evolving
2. Integrity: Doing the right things always
3. Excellence: Constantly raising the bar
4. Caring: Fostering a great place to work
5. Trust: Building strong relationships based on openness and trust

[ CITATION Joh17 \l 1033 ]

Human Resource Management – Nehari SenanaykePage 15

1.0 HR functions and the key roles and responsibilities of the HR functions

There are eight HR functions

1. Job analysis
2. Recruitment & Selection
3. On boarding/hiring
4. Performance management
5. Training and development
6. Compensation and reward
7. Labor relations and safety
8. Organizational development

Job analysis is the process of collecting, analyzing and setting out information about the
content of jobs in order to provide the basis for a job description and data for recruitment,
training, job evaluation and performance management[ CITATION Jac94 \l 1033 ]. Job
analysis concentrates on what jobholdersare expected to do in the organization. The
functions help to develop other functions as well.
Recruitment & Selection is also an important function in HR. Recruitment involves
attracting a field of suitable candidates for the job. When it comes to Selection, it consists
of the processes involved in choosing from applicants a suitable candidate to fill a post.
The organization uses various methods in recruiting and selecting candidates.
The newly recruited employee must get an idea about the organization and should use
his/her capabilities for the betterment of the organization. He or she might need new
skills knowledge to perform organizational duties[ CITATION Arm09 \l 1033 ]. The function
of on boarding helps with that.
On boarding, which is also known as organizational socialization, refers to the
mechanism through which new employees acquire the necessary knowledge, skills, and
behaviors to become effective organizational members and insiders.
Once employees become effective and skillful, might need better rewards for their
achievements.
Then the organization needs a way to measure the performance.
Performance management function can be defined as a process that provides feedback,
accountability, and documentation for performance outcomes. As I said earlier it helps
employees to channel their talents toward organizational goals
The recruited employees need be trained and developed. The function of training and
development
can be defined as ongoing educational activities within an organization designed to
increase the success and performance of the workforce. Training and development
programs offered by a business might include a variety of methods and programs that can
be joined on a necessary or voluntary basis by staff.
The function of compensation and reward also plays a major role in human resource
management.
As the employees demand a proper return for the work, which have done.

Human Resource Management – Nehari SenanaykePage 16

While compensation can be defined as all of the rewards earned by employees, in return
for their labor, this includesdirect financial return consisting of pay received in the form
of wages, salaries, bonuses and commissions provided at regular and consistent
intervals[ CITATION Kul04 \l 1033 ].
Employees should be given non-financial rewards along with financial rewards. It will
make a huge impact on the attitudes of employees.
Rewards and compensation are critical factors for employee retention as well as in
reducing labor turnover. Along with all the above, Maintaining labor relations is also
very important. It can be defined as the study of how employers and employees work
together to create a fair workplace.

Human Resource Management – Nehari SenanaykePage 17

2.0 Different approaches in recruitment and selection

According to Edward and John [ CITATION Law09 \l 1033 ] followings is the recruitment
methods used in modern businesses.
Recruitment
Recruitment involves attracting a field of suitable candidates for the job. The best
recruitment campaign will attract a small number of highly suitable applicants, while
being cost effective, being speedy and showing courtesy to all candidates.
Recruitment plan involves
o Vacancy
o Job analysis
o Job description
o Person specification
o Source candidate

Selection
Selection -Selection is aimed at choosing the best person for the job from the field of
candidates sourced via recruitment.
Any selection process needs to ensure
o Reliability - to give consistent results
o Validity - as a predictor of future performance
o Fairness-selection in a nondiscriminatory way
o Cost-effectiveness-In terms of manager's time and other options available.

2.1 Approaches of recruitment

1. In-house recruitment – process of a candidate being selected from the

current workforce to take up a new job in the same organization, perhaps as a promotion,
to provide career development opportunity, or to meet a specific or urgent organizational
need.[ CITATION www172 \l 1033 ]
Larger companies may favor the use of an in-house recruitment department, rather than
outsourcing their recruitment needs to other agencies. The in-house recruiting team acts
as an extension of the HR department. And liaise with the different divisions of their
company, understand their hiring needs, then go, and find the best people for the job.
Often, in-house recruitment can be much more cost-effective and efficient than
employing external agencies. The members of the team are only recruiting for one single
organization, which allows them to develop an expert insight into what their company
specifically looks for in a candidate.[ CITATION All16 \l 1033 ]

Human Resource Management – Nehari SenanaykePage 18

  An employee referral program is a system where existing employees recommend
potential candidates for the job unfilled, and in some organizations if the
recommended candidate is appointed, the employee receives a commission in cash.

 Internal recruiters - often assist in finding candidates who not only meet the job
requirements but whose goals and values match the organization's, which often leads
to higher retention rates. This can reduce the cost future and in the current situation.
However, internal recruiters may work within a financial budget that does not allow
using multiple sources to fill each job opening, which limits the pool of candidates to
choose from. This can consume time and inability to find the suitable candidate.

2. Employment agencies - An employment agency is an organization, which

matches employers to employees. In all developed countries, there is a publicly funded
employment agency and multiple private businesses, which act as employment agencies.

A traditional recruitment agency

An employment agency that has a brick-and-mortar office. It is like a walk-in drive. The
candidate visits any local branch of the agency to submit his/her resume. The recruitment
agency then shortlists appropriate resumes. Whenever a vacancy crops up at any
company, the agency forwards the resumes of the selected candidates.
Niche recruitment agency
A Niche recruitment agency niche recruitment agency selects highly talented candidates
from very few domains. The domain from which the candidates are selected might be
Information Technology or Engineering, which could be anywhere from Computer
Science, and Electronics, to Mechanical or Civil. A niche recruitment agency provides
the industry with highly skilled and talented candidates from a particular geographical
area who have sound knowledge in their field.
Niche recruitment agency can help cover one or more market sectors and find candidates
with specific skill sets in a particular niche, a traditional recruitment agency is ideal when
companies need a wider talent pool from diverse backgrounds to suit multiple job
positions

Headhunters
According to Monica and Kenneth[ CITATION Bel04 \l 1033 ] in headhunting, it uses
multiple sources to find candidates to fit a job opening. These professionals often use
several Internet job boards, professional associations, referrals and networking. Also will
solicit qualified professionals who are not seeking new positions and are referred to as
"passive candidates." Headhunter fees are often between 20 and 35 percent of the
candidate's salary if the candidate is hired. Good headhunters offer a probationary period
for the candidate, refer and offer a refund if the candidate resigns or is terminated. This
seems like a win-win situation, but it is rare for candidates to resign or be terminated
during the probationary period[ CITATION Chr171 \l 1033 ]

Human Resource Management – Nehari SenanaykePage 19

Human Resource Management – Nehari SenanaykePage 20
2.2 Approaches of Selection

1. Interviews -Selection interviews are typically conducted onsite at the hiring

company. The purpose of a selection interview is to determine whether a candidate will
be selected for the position, he or she is interviewing for. A selection interview is
typically more attentive than a screening interview.

2. Assessment Tests During the job interview process, some employers

require to take an assessment test before make a formal offer. This could mean a general
assessment test to better understand candidates’ professional preferences and personality
type, or a skill-specific test in a particular area (such as logic, grammar or math)

3. Assessment Centre -The idea of the assessment center grew out of the
obvious shortcomings of the selection interview and other selection techniques.
Assessment centers, usually provided by external consultants unless the firm is
particularly large, allow the assessment of individuals working in a group or alone by a
team of assessors, who use a variety of assessment techniques such as,
(group discussions, presentations, questionnaires simulations games
speeches peer rating self-appraisal, role plays, and written tests.)

4. Resumes are used to obtain relevant information about the applicant and
allow for comparison with the person specification of the job. Should also give the
applicants some ability to express themselves beyond the limited factual remit of the
form.
5.

6. References -The purpose of references is to confirm facts about the

employee and increase the degree of confidence felt about information given during
the other selection techniques.

Strengths and weaknesses of recruitment approaches

Approach Strengths Weaknesses
Internal recruiters Cost and time saving to the Might not be able to choose the ideal
organization person
Employee referrals Saves time with induction / cost The disillusionment of the referral
saving program.
Traditional Ability to attract people who are not
Most traditional agencies are outdated
agencies in to technology and inefficient.
Niche recruiters Access to key strategic skills Possibility of losing an opportunity
because of virtual
Headhunting Headhunters have access to New talent is lured only by the
unpublished or hidden jobs not yet promise of greater financial gains.
advertised.

Human Resource Management – Nehari SenanaykePage 21

Table 2.2.1 - Strengths and weaknesses of recruitment approaches
[ CITATION pen16 \l 1033 ]

Job vacancies are advertised on TopJobs.lk and cv.lk as well as on LinkedIn, which are
well-known websites rather than using traditional recruitment agencies. However, this
will help john keels to attract a very professional crowd.
Most of the time john keels use internal recruiters and employee referrals to fill up
vacancies. Apart from that company has allowed shifting to a job role within the Group,
which is giving rise to ore internal recruitments.
This will cause a huge time and a cost saving, but this may avoid the organization from
hiring best talent available in the market.
The company also uses KPMG and similar executive search firms to recruit executive
and higher-gradeemployeesbecauseit leads to identifying young talent which is needed by
the company to be competitive.
Strengths and weaknesses of selection approaches
Approach Strengths Weaknesses
Interviews Opportunities to evaluate rapport Time consuming and Costly
between the candidate and the potential
colleagues/bosses
Assessment Tests Ability to detect interpersonal Some assessments can take a lot of
characteristics that may be required for time and effort to complete
some jobs.
Assessment Centre The assessment center is eminently fair The cost of setting administering ,
and objective staffing and producing results can
be extremely high
Resumes saving interview time by selecting only The candidate’s job results may be
the most suitable candidates for impossible to verify
interview
References Allows employer to obtain fear of being actionable for libel
independent information about our
candidates’ previous on the job
performance

Table 2.2.2 - Strengths and weaknesses of selection approaches

In the selection process John Keells makes sure that company invest in the best suited
person for the job. And use wide range of selection techniques such as resumes,
interviews assessment tests, assessment centers and references to identify the best
candidate from the rest.
For executive grade selections as the first phase IQ and personality tests are given to the
candidates as most of the companies in the industry.

In the latter part of the selection process subject related and job role related presentations
or face-to-face interview questions are used.

Human Resource Management – Nehari SenanaykePage 22

The recruitment department of john keels also checks references of the candidates along
with all the above techniques.

2.3 Reward schemes and management

“Reward system refers to all the monetary, non-monetary and psychological payments
that an organization provides for its employees in exchange for the work perform”
This is the definition provided by Bratton.

Rewards schemes may include extrinsic and intrinsic rewards. Extrinsic rewards are
items like financial payments and working conditions that the employee receives as part
of the job. Intrinsic rewards relate to satisfaction that is derived from actually performing
the job such as personal fulfillment, and a sense of contributing something to society.
Many people who work for charities, for example, work for much lower salaries than
employees might achieve if worked for commercial organizations. In doing so,
employees are exchanging
Extrinsic rewards for the intrinsic reward of doing something those employees believe it
is good for society.

Figure2.3.1 - Employee Reward Management and Practice

Source -A Handbook of Employee Reward Management and Practice
[ CITATION Arm04 \l 1033 ]

Human Resource Management – Nehari SenanaykePage 23

What are the achievements of reward scheme to the organization?

1. Aid to achieve the company goals by motivation of the employee.

2. To ensure that the organization is able to recruit and retain sufficient number of
employees. 4. To align the risk preferences of managers and employees with those of
the organization.
5. To comply with legal regulations.
6. To be ethical.
7. To be affordable and easy to administer

Both intrinsic and extrinsic rewards have positive relationships between job satisfactions.
2.3.1 The link between motivational theory and reward

In simple words motivation is making the employees work willingly and happily.There
are many different theories that try and help explain motivation such Maslow’s hierarchy
of needs, Herzberg’s two-factor theory

Figure2.3.1.1 the process of motivation (Michael Armstrong)

Source – author developed

Maslow mentions in his theory that managers following this theory deflect their
attentiveness to offering complementary pleasing relationships, more attractive work, and
more opportunities for self-fulfillment on the other hand; Herzberg in his theory suggests
that there are two basic needs of individuals such as hygiene factors (environmental
factors and motivation factors. Managers following Herzberg’s theory reject money as a
motivator and pay attention to supplying more job enhancements. According to
McGregor's theory, managers may follow two different theories which is theory X and
theory Y. pursuant to theory x, the average employee dislikes work and will avoid it
whether he/she knows what to do or not, that is why employers suggest theory Y which
leads them to do excellent job and managers offer opportunities to have a job done.
However, McClelland focuses interest on providing employees with the capability to
persuade their needs for success, power, and relationship. Companies use both positive

Human Resource Management – Nehari SenanaykePage 24

amplification and negative amplification to motivate employees. Managers may use
positive motivation techniques to persuade employees. Bottom line is Reward system and
motivational theory has positive relationship.
The Managers must be conscious of ways to increase employee motivation as there are
various ways to redesign a job to encourage employees, including job enrichment, job
enlargement and job rotation.
Job Enrichment-provides an employee with more tasks to do as a part of their job, as
well as the responsibility and authority needed to complete those additional tasks. Those
additional tasks should be matched with the skills, knowledge and abilities the employee.[
CITATION Cou17 \l 1033 ]
Job Enlargement-Broader the tasks of current job. While job enlargement is limited in
that it does not provide the additional responsibilities or authority that job enrichment
does. This will help to reduce the boredom of employee, motivation to perform at higher
levels of productivity increases.[ CITATION Stu17 \l 1033 ]
Job rotation- is the final job redesign strategy that assigns workers to an alternative job
ona temporary basis. This is useful in many different ways.first, it gives employee a
chance to learn something new and to do beyond what employees are doing. Additionally
it increases employees understanding about what co-workers are doing.[ CITATION Stu17 \l
1033 ]

3.0 How those practices facilitate the profit achieving process & productivity of
john keels

As the largest business conglomerate in Sri Lanka, john keels has passed different
milestones while following very effective hr practices
The value creation process of the john keels has been built around loyal and
committed employees, Over the years, the company has attracted the best and the
brightest talent towards building a strong team that reflects the diversity of the
customers company serve. The company continue to engage and encourage
employees to perform to the best of their ability through a performance oriented
culture founded on ethical and transparent behavior which, promotes sustainable and
profitable growth
In any organization, most important resource is human capital. So it’s very important to
manage human capital. It is critical to recruit and retain enough employees for the
company as employees are the driving force of any organization. so having a proper
reward system is a must. A proper reward system includes financial and non-financial
rewards.
Also having a proper reward system and proper HR policies will lead to a motivated
work force.
Which will ensure a maximum return from the employees.

Human Resource Management – Nehari SenanaykePage 25

In the process of achieving profit it is important t have a motivated and skill full labor
force. John keels managing a proper Hr policy that ensure the company has enough
employees to Achieve company objectives. Have been the most profitable conglomerate
with support of their HR polices and motivated workforce.
The reward system in john keels which is consisted of both financial and non-financial
rewards plays a vital role in the process of motivating employees or the workforce who
drives the company.

3.1 Examples to different methods used in HRM practices & how they support
evaluation within an organizational context

Apart from job design techniques companies use different type of other methods to
evaluate and recognize the employees.
John keels holding encourages staff to express their views for the development of
the Company through Joint Consultative Committee meetings and all the
relevant information about the Company are conveyed to all the employees at the
staff meetings.
The Company continuously invests in the training and development of staff in all
categories from Senior management downwards and the training needs of the
employees are clearly identified from the appraisals for the first time JKPLC employees
were engaged in E-Learning Management System online.
Reward programs such as employee of the year –reward high performing executive staff
who have contributed significantly. Champion of the year reward non-executive staff
who has contributed significantly are practiced across the group. 25 year service long
service staff members are also recognized and rewarded by 25year service award.
In addition to the above mentioned annual awards, the employees at different
levels who demonstrated superior performance in line with the group values were
well recognized for their excellent contribution individually or as a team at the V-
Spark gatherings.

The company follows a process of sharing equity with the employees of the company.
That is a very good strategy to retain employees as well as to motivate employees.
Employees will have to stay in the organization in order exercise their rights. Most
probably it will be two to three years.
This will make them enjoy capital gains as well as dividend gains from the company
further this process will make employees feel that all are also a part of the organization
and if employees work hard for the betterment of the company, will get a return other
than usual salary .
Another outstanding feature of company’s policy is recognizing employees as the Y type
according to McGregor’s “X” & “Y” theory. As per his theory X type of employees are
typical and average employees who dislikes work and will avoid it whether he/she knows
Human Resource Management – Nehari SenanaykePage 26
what to do or not, while according to theory Y employees are curious keen about
work.want to better themselves and want to do an excellent job so the managers also will
offer opportunities.
Further John keels’ performance management cycle ensures that all employees
of the Group undergo regular appraisals. Formal feedback is provided on a bi-
annual basis to the executive cadre and once a year to all others. This process
ensures constant dialogue and seeks to assist in continuous improvements in
performance. A number of employee recognition schemes are in place, such as
Chairman’s Awards, Innovation, CSR and Sustainability Awards, in addition to
employee of the year , champion of the year and Bravo awards at a group level while
businesses also have their business specific recognition schemes.
3.2 HRM practices and application within an organizational context, using a range
of specific examples

The company is very keen on their human capital. In addition, follow a very advanced yet
very effective HR policy. A very good 37% of company’s workforce comprises of
permanent employees, 39% of contract employees and 24% of Contractor's personnel.

Figure 3.2.1- The employees’ competencies, capabilities and experience

Source – Annual report JKH 2016

The employees’ competencies, capabilities and experience, including their ability to

understand will be a driving factor to develop and implement the Group’s strategy. This
encompasses their motivation for improving processes, goods and services, and their
ability to lead, manage and collaborate. With regard to this, the HRM practices company
have are outstanding. Job redesign in other words job extension techniques is one of
them.
As a massive conglomerate, most of the time the work force will the job monotonous.
That will lead to boredom and then it will lead to demotivation finally which will be a
Cause to decrease company’s performance. To avoid that, most of the companies use job
extension techniques, such as job enrichment, job enlargement, and job rotation.Job
Enrichment is a process that provide an employee with more tasks to do as a part of their
job, as well as the responsibility and authority needed to complete those additional task.
So the responsibility as well as the authority will be given to the employees to carry out
their tasks. This will help the employee to feel more valuable. It will help the employee to
come out of his boredom.
Human Resource Management – Nehari SenanaykePage 27
 Job Enlargement is a technique that increases only the tasks of a particular job. It does
not provide the additional responsibilities or authority that job enrichment does. This also
will help to reduce the boredom of employee, motivation to perform at higher level of
productivity.
Job rotation- is a job redesign strategy that assigns workers to an alternative job on a
temporary basis. It gives employee a chance to learn something new and to do beyond
what employees are doing. Additionally it increases employees understanding about what
co-workers are doing.
This also acts as a contingency for the company, in the absence of a team member others
can do the missing employees work without breaking the flow, without creating any
confuses delays.
Training
Currently John Keells provides on the job training for cadres lower than managerial level.
Usually a new employee is taken through an induction program to familiarize the
working environment and culture. After which the employee is taken through a basic
training such assisting next to Nelly, where the current working methods and practices
are taught by a senior employee. This method has its own disadvantages because the new
employee would adapt all the blunders the experienced employee has been using. The
opportunity to bring in fresh ideas of working by the new employee is limited in this
method. In addition, the expected strategic outcomes of efficiency and improvement in
that job role will not be achieved through this technique.
Development
The company considers talent as their biggest asset. Therefore the employees are given
opportunities to get them exposed to cross functional activities by which open multiple
career paths. Moreover, tools such as development centers, leadership development
programs and talent chats are also promoted by the company in supporting the employees
to identify their future career progress and build them towards it. Coaching and
mentoring the employees to understand the competencies required for their career
development is also provided for the current employees
The Group is training and development programs are key policy components of talent
retention and ensuring a sustainable competitive advantage, with a total of 418,726hours
[2014/15: 480,635 hours] training provided to Group employees. Each year, training
hours for employees are determined on a needs basis, aligning the business specific
requirements with gaps identified in employee skills and the roof competencies as
outlined in the Group learning and development policy guidelines. Through the
performance management system, employees can request for training when conducting
self-appraisals while supervisors also nominate employees for training based on the needs
in line with the Group’s training calendar. On average, 35 hours of training was provided
per employee, with average training hours per annum amounting to 37 hours formals and
29 hours per female. The current year saw the introduction of bite sized learning for
better long term engagement of learners.HR capacity building and People Manager
Quality enhancement through a series of Team Leader Workshops for all team leaders in
the executive cadre, at every level, under the themes of Understanding People/Driving
Performance for Better Engagement and Developing Teams for Better Engagement

Human Resource Management – Nehari SenanaykePage 28

Figure 3.2.2– Total training hours of employees.
Source – Annual report JKH 2016
Learning
The company currently maintains a learning portal where the employees are given the
opportunity to engage in their learning activities much easily as a click of a button. The
senior employees have the ability to track the learning progression of their subordinates
also nominate them to any of the relevant trainings on offer. In addition an e-library is
also on offer on this portal where e-book summaries under different categories are made
available for the employees to enhance their knowledge and support their career
development.
Career Progression
The company has so far supported the employees in progressing on their career ladders.
Through training and development as well as opening opportunities to learn by
themselves John Keels as a Group has contributed to the employee development. Funding
required for post graduate studies for certain employee cadres are also provided by the
company to motivate the employeesto grow personally. This progression has allowed the
businesses to grow and the talent to move across the business leading to enhance the
performance of the Group.

As part of its career development strategy, the Group carries out leadership development
programs, management development programs, and Development Centers in
collaboration with reputed international and local institutes such as the National
University of Singapore, Harvard University and Postgraduate Institute of Management
Sri Lanka.
In addition “YOUNG FORUMS” are carried out with the intention of developing
management skills in executive and above levels through interactions with the business
leaders of the Group. Additionally, the Group strengthened its career support initiatives
with the introduction of a Career Support Panel to assist employees in chartering their
careers, and by providing e-learning modules and awareness sessions to support them in
this important area.

Human Resource Management – Nehari SenanaykePage 29

Talent Management
John keels holdings continuously monitor its employee retention and, in particular,
seeks to address staff attrition in typically high attrition industry groups through proactive
initiatives that engage employees. These include surveys such as the Voice of
Employee (VOE) which allows employees to rate the Group’s performance on key
barometers such as credibility, caring, equality and pride. The Group’s total attrition
(for executives and non-executives) and new hire attrition rate, excluding the IT
Enabled and Retail sectors, where staff turnover is expected to be high and is an
industry norm, was 21 per cent and 7 per cent respectively. However, the Group has seen
insignificant turnover for staff identified as Talent, with senior management
placing extra emphasis on developing and nurturing them with many one-on-one
interactions during the year. The executive level attrition is relatively lower than
attrition at non-executive levels. Further, recruitment based on profile mapping was
introduced in certain businesses to ensure a better fit with the needs of the organization.
A survey of millennials' aspirations to understand their needs better has assisted the
Group in retaining employees.

3.3 Employee relations and impact on decision making process

The term 'employee relations' refers to a company's efforts to manage relationships

between employers and employees. An organization with a good employee relations
program provides fair and consistent treatment to all employees. In addition, will be
committed to their jobs and loyal to the company. Such programs also aim to prevent and
resolve problems arising from situations at work.[ CITATION Stu17 \l 1033 ]
Maintaining healthy employee relations in an organization is a pre-requisite for
organizational success. Strong employee relations are required for high productivity and
human satisfaction. Employee relations generally deal with avoiding and resolving issues
concerning individuals, which might arise out of or influence the work scenario. Strong
employee relation depends upon healthy and safe work environment, cent percent
involvement and commitment of all employees, incentives for employee motivation, and
effective communication system in the organization. Healthy employee relations lead to
more efficient, motivated and productive employees, which further lead to increase in
profit.[ CITATION Man17 \l 1033 ]
Good employee relation signifies that employees should feel positive about their identity,
their job as well as about being a part of such a great organization. Despite the
importance of strong and healthy employee relations, there are circumstances in the life
of every organization when employee and management relations are hampered. An
effective employee relations program starts with clearly written policies. Employee
relations policies describe the company's philosophy, rules, and procedures for
addressing employee-related matters and resolving problems in the workplace. Many
companies have one or more employee relations representatives, people who work in the
human resources department to ensure that company policies are followed fairly and
consistently. Employee relations representatives work with employees and supervisors to
resolve problems and address concerns. An employee relations program is not a one-size-

Human Resource Management – Nehari SenanaykePage 30

fits-all solution. Strategies for good employee relations can take many forms and vary by
a number of factors, including industry, location, company size, and even individual
leadership philosophies. For example, issues that concern construction workers on the job
can be very different from the problems facing nurses or accountants. [ CITATION Man17 \l
1033 ]

4.0 Elements of employee legislation

Employment standards are the minimum standards of employment for workplaces

required by law. Employment standards cover many aspects of employment including
Minimum Wage Rates in Sri Lanka from 2013. According to legislation to be presented
in Parliament shortly, the national minimum monthly wage for all workers in any
industry or service will be Rs. 10,000, while the national minimum daily wage of a
worker will be Rs. 400
The worker is allowed to a meal or rest break of half an hour at the expiration of any
period of four hours of continual employment that is commonly translated into a meal
and rest break of an hour each day. No meal or rest break will be permissible if the
employee is not engaged in work for over five hours on any given day
Hours of operation. A normal workweek for most offices in Sri Lanka will be Monday
through Friday from around 8:30 am to 4:30 pm. Post offices and banks usually open at
9am and close at 3pm on weekdays.[ CITATION Jus17 \l 1033 ]
In accordance with the Shop and Office Employees Act, normal working hours are 8
hours per day and 45 hours per week. The Factories Ordinance states that the normal
working hours must not exceed 09 hours per day, exclusive of intervals allowed for meals
and rest. The normal working hours limit does not apply to any person who holds an
executive or managerial position in a public institution and who is in receipt of a
consolidated salary the initial of the scale of which is not less than Rs. 6, 720 per annum.
If a worker works beyond the stipulated working hours, he/she is entitled to an overtime
pay that is 150% (1.5 of X) of the rate of his ordinary pay. The overtime hours in a week
cannot exceed 12 hours.[ CITATION Sal17 \l 1033 ]Both shop and office and wages board
employees are entitled for eight statutory holidays declared for the year. These statutory
holidays are as follows,
1. Tamil Thai Pongal Day
2. National Day
3. Holy Prophet’s Birth Day
4. Day prior to Sinhala & Tamil new year
5. Sinhala & Tamil new year day
6. May Day (1st of May)
7. Day following Wesak full moon poya day
8. Christmas Day
If a statutory holiday falls on a weekly holiday, an alternative holiday or half a day
holiday must be declared for a shop and office employees. However, this is not applicable
to wages board employees (except for trades such as textile manufacturing, biscuits,
coconut growing, paddy hulling, rubber and tea growing trades).An employee is entitled
to take annual leave when the next calendar year starts. The duration of that first annual,

Human Resource Management – Nehari SenanaykePage 31

leave period is determined according to the date/month on which the employment
commenced. [ CITATION SME17 \l 1033 ]
From the second year onward, an employee is entitled to 14 days of paid annual leave,
after completion of 12 months of continuous service.
For the first year, an employee would have following annual leave, depending upon the
time of commencement of his employment:
1. 14 days if the employment commences on or after the first day of January but
before the first day of April;
2.
10 days if the employment commences on or after the first day of April but before
the first day of July;
3.
7 days if the employment commences on or after the first day of July but before
the first day of October;

4. 4 days if the employment commences on or after the first day of October.

5. A worker is required to take his annual leave within twelve months of its
entitlement.

No provision could be identified in laws to require an employer to provide compensatory

rest day to those workers working on weekly rest day. However, if a worker works on a
public holiday, he/she has to be allowed a holiday with full pay on or before December
31.
The Shop & Office Employees Act prohibits the employment of children under the age of
14 years in a shop or office. The Act further states that male children, between the ages of
14 and 18 years, cannot be employed before 6 a.m. or after 6 p.m. except in certain
specified types of employment.
The Employment of Trainees (Private Sector) Act contains specific provision for medical
leave due to ill health. A trainee is entitled to seven days of sick leave with full
allowances payable to him, for a period, or aggregate of periods, if a medical certificate
issued by a registered medical practitioner supports the application for leave.
[ CITATION Stu17 \l 1033 ]
Here are many Industrial dispute resolution mechanism introduced by Industrial
Dispute Act. These can be divided as judicial process and non-judicial process:
(a)Judicial process
(i)Labor Tribunals.
(b)Non judicial process
(i)Industrial courts;
(ii)Conciliation; and
(iii)Arbitration

Human Resource Management – Nehari SenanaykePage 32

The contract of employment can be terminated by the employer on disciplinary grounds;
or non-disciplinary grounds; or death or operation of law, (this category would include
termination of the contract of employment due to factors such as frustration of contract
and impossibility of performance); or an act of the employee which may arise in a variety
of circumstances such as resignation, vacation of post or abandonment of employment. In
case of fixed term contract, it would terminate by reaching the term of fixed period, as
specified under the contract.[ CITATION Sri15 \l 1033 ]
The duration of maternity leave is 12 weeks (84 days) excluding weekly holidays, Poya
days and statutory holidays. Out of these 12 weeks, 02 weeks maternity leave is before
confinement (including the day of her confinement) and 10 weeks following the day of
confinement.[ CITATION Sal17 \l 1033 ]
According to Section 2 of the Minimum Wage Ordinance, deductions from the wages of
a worker may be made in the following instances:
1. The price of any article of food supplied to the worker by the employer,
2. Any contribution which the worker makes through the employer to a pension
fund, provident fund, insurance scheme, savings scheme or medical or sickness
benefit scheme, etc.
3. Any contribution or subscription which the worker makes through the employer
to any welfare scheme, trade union or temple fund, etc.
4. The rent of any housing accommodation provided for the worker by the employer
and any amount determined as security
5. The price of any goods sold to the worker by the employer out of the goods kept
for sale at the place of employment of the worker;
6. Any loan taken by the worker from any fund or scheme
7. Any interest chargeable on any loan or advance provided
[ CITATION Int16 \l 1033 ]

In accordance with the Sri Lankan Penal Code, unwelcome sexual advances by a person
of authority in a working place are considered sexual harassment. The perpetrator of
harassment may be punished either with imprisonment up to a term of five years, or with
fine, or both. He/she may also be ordered by the court to pay an amount, as determined
by the court, to the victim of harassment for injuries.[ CITATION Sal17 \l 1033 ]

There is no clear provision in labor laws on the duration of probation period in Sri Lanka.
Generally, probation period is six months. The Shop and Office Employees Act requires
the employer to clearly mention the period of probation, conditions governing such
probation and circumstances under which the employment contract may be terminated
during probation. There is no provision in the law on paid or unpaid parental leave.
[ CITATION Sal17 \l 1033 ]

Human Resource Management – Nehari SenanaykePage 33

4.1 Employee relations with HRM practices on decision making

John keels holdings is one of the largest conglomerate in Sri Lanka, it is essential for
them to maintain proper employee relations.
At John keels the workforce as at 31 March 2016 was 19,522 of which 11,886 were
employees and 7,636 were outsourced personnel Of the Group’s total employees, 506 are
placed in the Maldives and 458 in India, with the remainder in Sri Lanka.
The company has been complying with shop and office employee act from the very
beginning as employees are govern by that act. Company has been able to comply with
the minimum wage rate regulation of minimum monthly wage for all workers in any
industry or service - Rs. 10,000, while the national minimum daily wage of a worker - Rs.
400
The company has been able to comply even with retirement benefit plans. As Sri Lankan
employees are eligible for the Employees’ Provident Fund (EPF) and the Employees’
Trust Fund (ETF) contributions. Employees who are Maldivian nationals or employed in
the Maldives are eligible for Maldives Retirement Pension Scheme (MRPS) contributions
whist employees based in India are eligible for Employees’ Provident
Fund (EPF) contributions according to the terms of the Employees’ Provident Fund and
Miscellaneous Provisions Act in India. The total Contribution made to the trust funds for
the reporting year was Rs.135 million while the total contribution made to the provident
funds was Rs.640 million. In Sri Lanka and India, employees are also entitled to
retirement gratuity. The employee benefit liability as at31 March 2016 was Rs.1.65
billion.
Meal breaks are also provided according to the law. This is a meal or rest break of half an
hour at the expiration of any period of four hours of continual employment that is
commonly translated into a meal and rest break of an hour each day.

Almost very entity of john keels holdings provides proper for dining and to rest. This
inclusive of two teas offered twice a day.
John keels holdings also allow overtime according to the act. Company does not have
rigid restrictions for over time. The company follows an independent policy about the
holidays. Company make all the statutory holidays are given to employees. However, the
employees do not get public and bank holidays as holidays. Only get mercantile holidays.
John keels are very strict bout illegal labor, the company does not allow any minor to
work in the origination. Because it has to be a good citizen to the society as well as it
should not damage their corporate image.

Leave are entitled employees according to the shop and office employees act. This is
consisting of annual casual and sick leave.
In resolving disputes, john keels use different kind of approaches to get the best out of
what both parties are wanting.

Human Resource Management – Nehari SenanaykePage 34

The Group engages with trade unions on an ongoing basis through Joint Consultative
Committees and other mechanisms. Formal agreements are found in the CF&R industry
group, covering over 711 employees, amounting to 6 per cent of the Group’s total
employees count. The Plantation Services sector follows the wage structures of the
plantation industry of the country and the Resort Hotels have entered into a Memoranda
of Understanding with staff representatives from one trade union.

In addition, even in health and safety, The Group places the highest importance on
ensuring a safe working environment for all its employees, taking steps to ensure that
health and safety concerns are prioritized and addressed across the Group. All business
units within the Group have been empowered to undertake any measure it may deem
necessary ensure that is a safe place to work. As a part of its human capital Management
strategy, incidents are logged, recorded and tracked on a continuous basis recorded and
tracked on a continuous basis.
The company has achieved a vast improvement from the year 2014/15 to 2015/16.
Company has reduced their number of staff affected by occupational injuries as well as
diseases. Even the region wise occupational injuries has also been reduced.
When it comes to Termination, the company follows a quite employee friendly policy as
company terminates the employee as the last resort.
It may after several unofficial warnings official warnings written warnings salary
deductions and even after suspending because of a malpractice of the employee.
Once someone is recruited to the company, the person has to go through several
processes in order to get familiar with the organization as well as the organization
culture. All this happens in the period of probation.
That is the period (usually six months) of time given to the newly recruited employee to
get familiar with the organization and organization also can decide whether to keep the
employee or not.
Both the parties have right to close the bargain within the probation period. JKH also give
employees a chance of getting familiar with the organization and to be sure of that,can fit
in and can corp. up with organizational culture.

John keels holdings have a culture, which is strongly, reject violence and sexual
harassment. The company always tries to maintain a good working environment without
violence.
(JKH) initiated a public awareness campaign against sexual harassment, targeting
commuters of public transport, in commemoration of the International Day for the
Elimination of Violence against Women falling on 25th November. Over 120 staff
volunteers from across JKH actively participated in the campaign carried out at four of
Colombo’s busiest bus depots in Colombo – Pettah central bus stand, Bastian Mawatha
private bus stand, Gunasinghepura private bus stand and the Borella Bus stand, to paste
stickers inside the buses and hand over information cards throughout the day.

Human Resource Management – Nehari SenanaykePage 35

Finally every single HRM practice affect the control of the organization and in their
decision making process. Because employees are a powerful stakeholder who can make a
sizable impact on the organization. There for in decision-making management also have
to think from the perspective of employee’s as well.

Human Resource Management – Nehari SenanaykePage 36

Self-criticism

The assignment covers the information about John Keels Holdings. I have gone through
most difficulties and hardships. At the same time I have learn most important and
valuable information and gather knowledge about this subject.

Strengths

 Finding information become easier

 Able to submit the assignment before due date

Weaknesses

 Completing Assignment within the given time

Human Resource Management – Nehari SenanaykePage 37

Gantt chart

  JUNE JULY
Description

  Week 1 Week 2 Week 3 Week 4 Week Week Week Week

1 2 3 4
Gather  
information  

Task 1  
 

   
Task 2

Task 3    

   
Formatting
and
finalizing

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