06. Deciphering the Complex Dynamics of Human Resource Management in Sri Lankan Multinational Corporations: A Study of Prevailing Challenges and Emerging Opportunities


1.          Introduction

One important factor influencing overall corporate growth and success in Multinational Corporations (MNCs) in Sri Lanka is Human Resource Management (HRM). Nonetheless, a number of opportunities and difficulties unique to the Sri Lankan environment affect HRM  (Jackson, et al., 2014). 

2.          Challenges in HRM for Sri Lankan MNCs

Managing cultural diversity in MNCs in Sri Lanka is one reported obstacle to HRM (Fernando, 2011). As MNCs employ diverse nationalities, the role of HR in minimizing cultural clashes and promoting a harmonious work environment is critical. Second, according to a study by Pathirage et al. (2008), Sri Lankan multinational corporations' HR departments struggle to draw and keep qualified workers as a result of growing domestic and international rivalry.

 

Source (Unilever, 2022)

3.          The Role of HRM in Addressing Challenges 

An important factor in overcoming these obstacles is HRM. Competent remuneration packages and diversity training initiatives are two examples of effective HRM strategies that can help create a more welcoming workplace and keep talented workers (Morley, 2004).

 

Source (Nestle, 2024)

4.          Opportunities for HRM in Sri Lankan MNCs

 Notwithstanding the difficulties, there are lots of chances to enhance HRM procedures in MNCs. To successfully manage diversity, MNCs can adhere to global best practices while taking into account regional peculiarities of culture (Alfes, et al., 2013). In order to draw in and keep skilled employees, MNCs might also provide attractive career development prospects and comprehensive benefits (Hendry, 2012).

5.          Evidence from Sri Lankan MNCs

 Unilever Sri Lanka efficiently addresses HRM obstacles while capitalizing on new opportunities. Its HRM policies show how to successfully strike a balance between local culture and international norms. Good diversity management, competitive compensation, and extensive training initiatives have produced a happy and driven workforce, which has increased growth and productivity (Unilever, 2021).

(Unilever , 2021)

HSBC Sri Lanka takes advantage of the multicultural environment to foster a more innovative and dynamic team by adapting global HR practices to a local context (HSBC Sri Lanka, 2019).

Nestle Lanka PLC, operates a multicultural workplace, managing differences in work attitudes, values, and language can be challenging but also rewarding in terms of diverse ideas and approaches (Nestle Lanka PLC, 2019)

6.          Conclusion

 There are several opportunities and obstacles when analysing the intricate HRM dynamics of Sri Lankan multinational corporations. These companies' pursuit of worldwide competitiveness means that developing and implementing efficient HRM strategies will be crucial. No doubt, more research and the application of data-driven insights to customise HRM policies to particular corporate contexts will result in healthier workplaces, more productivity, and long-term commercial success.

 

7.          References

 Alfes, K., Shantz, A., Truss, C. & Soane, E. C., 2013. The link between perceived human resource management practices, engagement and employee behaviour: a moderated mediation model. The international journal of human resource management, 24(2), pp. 330-351.

Fernando, M., 2011. The Impact of Cultural Diversity on work group effectiveness in Multinational Corporations in Sri Lanka. South Asian Journal of Management, 18(4), pp. 23-36.

Hendry, C., 2012. Human resource management. s.l.:Routledge.

HSBC Sri Lanka, 2019. Annual Report, Colombo: HSBC Sri Lanka.

Jackson, S. E., Schuler, R. S. & Jiang, K., 2014. An aspirational framework for strategic human resource management. Academy of Management Annals, 8(1), pp. 1-56.

Morley, M., 2004. Contemporary debates in European human resource management: Context and content. Human Resource Management Journal, Volume 14, pp. 49-70.

Nestle Lanka PLC, 2019. Annual Report, Colombo: Nestle Lanka PLC.

Nestle, 2024. Diversity & Inclusion. [Online]
Available at: https://www.nestle.lk/communities/promoting-decent-employment-diversity
[Accessed 08 04 2024].

Pathirage, C., Haigh, R., Amaratunga, D. & Baldry, D., 2008. Knowledge management practices in Sri Lankan construction organisations. Structural Survey, 26(4), pp. 309-324.

Unilever , 2021. Unilever embraces diversity and inclusion with differently abled staff. [Online]
Available at: https://www.unilever.com.lk/news/press-releases/2021/unilever-embraces-diversity-and-inclusion-with-differently-abled-staff/
[Accessed 08 04 2024].

Unilever, 2021. Driving sustainable growth, Colombo: Unilever.

Unilever, 2022. Unilever Sri Lanka, one of Asia’s Best Employer Brands 2022. [Online]
Available at: https://www.unilever.com.lk/news/press-releases/2022/unilever-sri-lanka-one-of-asias-best-employer-brands-2022/
[Accessed 08 04 2024].

 

 

 

Comments

  1. Gowri PereraApril 9, 2024 at 3:13 PM

    Analyzing the complex HRM dynamics of multinational corporations in Sri Lanka presents a number of opportunities as well as challenges. Because these businesses want to be globally competitive, creating and executing effective HRM strategies will be essential. There is little doubt that increased research and the use of data-driven insights to tailor HRM policies to specific corporate contexts will lead to longer-term commercial success, healthier workplaces, and increased productivity. The article covers the key points of Prevailing Challenges and Emerging Opportunities in a very nice way.

    ReplyDelete
  2. Sachini HithakshikaApril 13, 2024 at 8:29 AM

    Well organized article.

    ReplyDelete
  3. Amina MahmoodApril 14, 2024 at 8:30 PM

    The article covers the key points of Prevailing Challenges and Emerging Opportunities in an excellent way. Gained a good knowledge regarding this topic through your article.

    ReplyDelete
  4. Dhanushka PathiranaApril 15, 2024 at 2:28 AM

    This post serves as a valuable resource for HR managers in multinational companies operating in Sri Lanka. You have provided a clear and comprehensive overview of the prevailing challenges and emerging opportunities in human resource management and has highlighted the need for HR managers to adopt a strategic and proactive approach to navigating the complex dynamics of managing human resources in multinational corporations. Good presentation.

    ReplyDelete
  5. Tharuka LiyanaarachchiApril 15, 2024 at 4:13 AM

    Your comprehensive analysis of HRM challenges and opportunities within Sri Lankan multinational corporations offers valuable insights into the complex dynamics at play. By highlighting the importance of managing cultural diversity and attracting and retaining qualified talent, you underscore the critical role of HRM in navigating the unique challenges faced by MNCs in Sri Lanka. The examples from leading companies demonstrate effective strategies for addressing these challenges while capitalizing on emerging opportunities. Overall, your study emphasizes the significance of adopting global best practices while considering local cultural nuances to drive growth, productivity, and long-term success

    ReplyDelete
  6. Madushika SugathaghanaApril 15, 2024 at 5:50 AM

    Very good article

    ReplyDelete
  7. Rusky AhamedApril 15, 2024 at 10:14 AM

    Examining the HRM dynamics of multinational companies in Sri Lanka offers a number of advantages and disadvantages. These businesses want to be globally competitive, thus having effective HRM practices is essential to their success.

    ReplyDelete
  8. sudarshiApril 16, 2024 at 1:03 AM

    Analyzing the complex HRM dynamics of multinational companies doing business in Sri Lanka has a number of benefits and drawbacks. These businesses aim to compete globally, thus creating and putting into practice effective HRM strategies will be essential.

    ReplyDelete

Post a Comment

Read my other posts

05. The Role of Human Resource Management in Fostering Corporate Social Responsibility: A Closer Look at the Telecom Sector

Image
  1         Introduction Human Resource Management (HRM) crucial to an organization's expansion and success. Specifically, its expansive roles in implementing Corporate Social Responsibility (CSR) are notable   (Jabbour & Santos, 2008) . CSR, implementing a self-regulatory model encourages businesses to take social responsibility for their stakeholders and the general public effectively. This report focuses on the role HRM plays in exemplifying CSR in Sri Lankan companies.   2         HRM and CSR In recent years, there has been a rising significance for HRM and CSR integration. (Kim & Scullion, 2013) . HRM facilitates the adoption of CSR by motivating employees to take part and adapt to the CSR culture. Nevertheless, HRM's responsibilities extend beyond execution; they also include creating CSR policies that work and enhancing strategies for communication.   Source (De Stefano, ...
Read more

01. Advancing Gender Equality: A Review of Sri Lankan Companies' Efforts

Image
  1.           Introduction The ultimate objective of gender equality is to attain equal rights and privileges for men and women in terms of work opportunities, compensation, and treatment (Gunawardena, 2015) . Companies in Sri Lanka are increasingly incorporating gender equality into their business culture and regular operations   (International Finance Corporation, 2022) . This report offers suggestions and the strategies that are being used along with the companies that are leading the standard of excellence. 2.           Current Situation A recent report by the International Labour Organization, (2016)   draws attention to the pressing issue of Sri Lanka's high labour force participation rate (75%) for men and significantly lower rate (35%), which applies to women. Companies and organizations in Sri Lanka   are working hard to change this, despite the glaring pe...
Read more

03. Women Leaders in Sri Lankan Companies: Breaking Barriers and Shattering Glass Ceilings

Image
  1         Introduction The "glass ceiling" is becoming gradually broken down by female leaders, and Sri Lanka is not an exception to this worldwide trend (Canagarajah, et al., 2009) . In Sri Lanka's corporate sector, a number of aspiring and successful female leaders have established themselves, in spite of cultural and socioeconomic obstacles  (International Finance Corporation, 2019) . This report examines the status of women leaders in Sri Lankan companies and the strides they are making, underpinned by references. 2         Women's Presence in the Corporate Sector One of Sri Lanka's renowned and successful business women is Kasthuri Wilson Chellaraja. She currently serves as the Group CEO of Ceyline Group, one of Sri Lanka's top conglomerates with a diverse range of interests spanning the maritime and education services, pharmaceutical, and travel industries. She was the CEO of Hemas Holdings PLC ...
Read more