You are on page 1of 85

HUMAN RESOURCE MANAGEMENT

By YMWGPK Udurawana
1 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Definition of HRM

 Human Resource Management (HRM) is the efficient and effective utilization of human resources (HR) to achieve goals of an organization

2 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Generic Purpose of HRM
Generic purpose of HRM is to generate and retain appropriate and motivated employee force, which gives the maximum individual contribution to organizational success.

3 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Strategic Objectives
Procure RIGHT People, Time, Job Retain most appropriate employee Improve organizational commitment Generate & enhance job involvement & Organizational Citizenship  Ensure motivate & satisfaction  Control the cost of employee    
4 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

duties and responsibilities in to an organizational unit (Job) for the purpose of accomplishing a certain objective  Jobs are basic building blocks of the firm or an organization unit of work  There are three main components of Job  Task  Duties  Responsibilities 5 YMWGPK Udurawana.2011 . Rajarata University of Sri Lanka .Job Design  Job design is a function of arranging task. Faculty of Management Studies. Lecturer.

Duty. Lecturer Task.Task – Duty -Responsibility  Task is a series of motions and is a distinct identifiable small work activity  Duty is a sense of task and is a larger work segment accomplished by completing a series of task  Responsibility is the obligation (bound ) of to performing the entrusted task and duties successfully Eg. Faculty of Management Studies.2011 . Lecturer. Responsibility 6 YMWGPK Udurawana. Rajarata University of Sri Lanka .

2011 . Rajarata University of Sri Lanka .Techniques of Job Design Scientific Techniques Job Enlargement Job Enrichment Job Rotation Professional Techniques 7 YMWGPK Udurawana. Lecturer. Faculty of Management Studies.

Scientific Techniques  That is job divided into small parts and which are to execute b various person and who get specification of task. Rajarata University of Sri Lanka .2011 .  Result to job specialization  This objective is maximize the organizational productivity by maximizing efficiency (Scientific Management)  Tat results for short job cycle (Requires short time for job) 8 YMWGPK Udurawana. Lecturer. Faculty of Management Studies.

Lecturer. Rajarata University of Sri Lanka . Faculty of Management Studies.Job Enlargement  Increase the scope of the job  Include new duties  Additional to current duties  Increase the scope of the job  It is horizontal loading  This is a job redesigning method  Where job cycle is larger 9 YMWGPK Udurawana.2011 .

Job Enrichment  Increasing the depth of job  Expanding Authority  Expanding Responsibility For planning and controlling. Rajarata University of Sri Lanka . Lecturer.2011 .  It is vertical loading  This is also a job redesigning method 10 YMWGPK Udurawana. Faculty of Management Studies.

Faculty of Management Studies. Rajarata University of Sri Lanka .Job Rotation  It is shifting an employee from one particular job to another without limiting the employee to do a particular job.  This helpful to create a skillful worker  This is also a job redesigning method 11 YMWGPK Udurawana.2011 . Lecturer.

This factors directed to the employee motivation and development. Rajarata University of Sri Lanka .Job Design Elements  Two element can be seen  Efficiency Elements . There are five elements of Behavioral Elements 12 YMWGPK Udurawana.2011 . and attempt to keep efficiency.It is affect of minimizing job executive time. cost. Lecturer. There are three elements of Efficiency Elements  Behavioral Elements . Faculty of Management Studies.

JOB ANALYSIS  It is a systematic investigation of Jobs and Job holder characteristics in order to create a collection of information that can be used to perform various HRM activities and functions  And also it can be said as collecting. Lecturer. evaluating. Faculty of Management Studies. organizing and recording information regarding Jobs within the organization 13 YMWGPK Udurawana. Rajarata University of Sri Lanka .2011 .

Rajarata University of Sri Lanka .Components of Job Analysis  Job Description  Job Specification 14 YMWGPK Udurawana.2011 . Faculty of Management Studies. Lecturer.

Job Description  Job description is a written statement of what the Jobholder actually does. Responsibility and Duties. But we can identify following thing as generally at JD.2011 . & Job Summary  Relationship. Lecturer.  Job identification. and what conditions the Job is performed. Rajarata University of Sri Lanka .  Authority & Standard of performance  Working condition  Profile of the job characteristics 15 YMWGPK Udurawana. Faculty of Management Studies.  There is no common format to JD. how he or she does.

Lecturer.Job Specification  Specifies the key qualifications an individual needs to perform the Job efficiently and effectively. training. experience.  Describes the person ideally needed to perform the Job. education. Rajarata University of Sri Lanka .  A profile of human characteristic needed to perform the Job (Required abilities. 16 YMWGPK Udurawana.2011 . Faculty of Management Studies. special mental and physical skills).

Rajarata University of Sri Lanka . Faculty of Management Studies.HR Planning  HRP is the process of determining future employee needs and deciding steps or strategies to achieve those needs for the purpose of accomplishing organization goals. Lecturer. 17 YMWGPK Udurawana.2011 .

Rajarata University of Sri Lanka .2011 . Lecturer. Faculty of Management Studies. 18 YMWGPK Udurawana.HR Planning Process Forecast Future Demand for HR Estimate HR Supply Compare Demand with Supply Develop Strategies to be Taken Assess HRP effort.

     Demand for Organization (Product). Rajarata University of Sri Lanka .Forecast Future Demand  This involves estimating the type and quantity of employee needs for future  Following factors may affect to future demand. Faculty of Management Studies. Lecturer.2011 . Strategic Plans (goals) of the firm Production Method /Technology (Capital / labor) Employee Movement External Environment 19 YMWGPK Udurawana.

Faculty of Management Studies. Rajarata University of Sri Lanka . Lecturer.Internal HR Supply  This involves making internal supply estimate  Internal supply can estimate through following  Auditing current human resources  Identifying & arranging possible replacement  That summarizes prepare two documents as  Skill Inventories  Management Inventories 20 YMWGPK Udurawana.2011 .

Faculty of Management Studies. Rajarata University of Sri Lanka .2011 . Identify information of the employee  Identify of the job of employee  Education & experience  Seniority  Special competencies & performance  Weakness 21 YMWGPK Udurawana.Skill Inventory  Skill Inventory  It refers to the document that specifies competencies of a current non managerial employee in the firm. Lecturer.

 Number of Subordinate Supervised  Jobs & Duties of Subordinates  Total Budgets  Management Training Received  Creative & Innovations 22 YMWGPK Udurawana. and other competencies of a current manager of firm. Lecturer.2011 . Faculty of Management Studies. Rajarata University of Sri Lanka .Management Inventory  It refers to the document that catalogues technical. human relation.

Rajarata University of Sri Lanka . Lecturer. Faculty of Management Studies.Compare Demand & Supply  Need comparisons of estimated Hr demand & Hr Supply  Identify net employee requirements  May be Human resources shortage or HR surplus of organization. 23 YMWGPK Udurawana.2011 .

Strategies for Surplus  Hiring Freeze (No further hiring)  Reduction of reward expenditure  Attrition (Voluntary Departure)  Early retirement Programme  Lay off (temporary Stoppage)  Formal out placement facility 24 YMWGPK Udurawana. Lecturer.2011 . Faculty of Management Studies. Rajarata University of Sri Lanka .

Rajarata University of Sri Lanka . Casual Workers 25 YMWGPK Udurawana.Strategies for Shortage  Overtime  Outsourcing  Internship Providing  Part Time Hiring  Capital Substitution  Hire Temporary. Lecturer.2011 . Faculty of Management Studies.

Faculty of Management Studies. benefit  Determine its import on organizational goals & objectives 26 YMWGPK Udurawana. Lecturer. Rajarata University of Sri Lanka .Assess HRP Effort  Clearly Evaluate cost vs.2011 .

Rajarata University of Sri Lanka .2011 .Recruitment  It is the process of finding and attracting suitable qualified people to apply for employment 27 YMWGPK Udurawana. Lecturer. Faculty of Management Studies.

2011 . Rajarata University of Sri Lanka .Recruitment Process Identify Job Vacancies Determine Job Requirements Consider factors affecting Recruiting Prepare Job Applications Select the Recruiting Method Implementation & Evaluation 28 YMWGPK Udurawana. Lecturer. Faculty of Management Studies.

2011 .Determine Job Requirements  Characteristics of Proposed Job  Skills and Competence of Expected Person 29 YMWGPK Udurawana. Lecturer. Faculty of Management Studies. Rajarata University of Sri Lanka .

Lecturer. Rajarata University of Sri Lanka . Faculty of Management Studies.Factors Affecting Recruiting        Organization Recruitment policy Cost & Time Environment Workforce Planning Salary Employee Market Recruiting Habits 30 YMWGPK Udurawana.2011 .

Prepare Job Applications  Use common methods to collect data     Only essential information Enough space to provide data Helping information to applicant Simple and attractive 31 YMWGPK Udurawana. Lecturer.2011 . Faculty of Management Studies. Rajarata University of Sri Lanka .

Select the Recruiting Method  At selection process Firm must consider its Recruitment Policy  Internal Recruitment Policy  External Recruitment Policy 32 YMWGPK Udurawana. Lecturer. Rajarata University of Sri Lanka . Faculty of Management Studies.2011 .

Faculty of Management Studies.Internal Recruitment Policy  It refers to procuring candidates to fill vacancies within the organization itself Advantages  Create Employee Moral  Workers Career Development  Employee Motivation  Cheaper Cost  Effective LMR Disadvantages      Prevent new knowledge Employee conflicts Avoids new BLOOD Retains OLD BOOB (Error) Inbreeding (Junior follow same thing) 33 YMWGPK Udurawana. Rajarata University of Sri Lanka .2011 . Lecturer.

Faculty of Management Studies.2011 . Rajarata University of Sri Lanka .Method of Recruiting       Simple word of mouth Use Skill Inventories Use Management Inventories Job Posting & Bidding Intranet Succession Plan – that shows the successors who are to be recruited to future job at right time. Lecturer. 34 YMWGPK Udurawana.

Rajarata University of Sri Lanka . 35 YMWGPK Udurawana. and other competencies of a current manager of firm.  Management Inventory  It refers to the document that catalogues technical. Faculty of Management Studies. human relation. Lecturer.2011 .Skill & Management Inventory  Skill Inventory  It refers to the document that specifies competencies of a current non managerial employee in the firm.

Lecturer. Faculty of Management Studies.2011 . Rajarata University of Sri Lanka .External Recruitment Policy  It refers to procuring candidates to fill vacancies outside the organization Advantages  Create new knowledge  Employee performance high  Strength of new BLOOD  Reputation High Disadvantages  Prevent Employee Moral  Employee De motivation  Higher Cost  Less Effective LMR 36 YMWGPK Udurawana.

Method of Recruiting
         Employee’s Referrals Pre Applicant Past Employee Educational Institution E- Recruiting Executive Search Firms (Head Hunting) Special Event Recruiting Internship & Collage Recruiting Advertising
37 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Advertising
     More popular method for recruiting Use TV, Radio, Banners, News Paper… Consume high cost Attract large number of job seekers It impact on Attract to qualified applicant Attract already employees Firms’ own employee External Parties
38 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Two Type Advertising
Closed Advertisement  No reveal about firm  Use 3rd party to recruit  Avoid canvassing  Avoid public relation  Competitive advantages  Attract suitable persons Open Advertisement  Reveal details of firm  High cost  Attract more persons  High public relations

39 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Implementation & Evaluation
 Take decision on above steps are implemented  Which involves to individuals apply to vacancies, and application receive to the firm  Evaluation can be done through following measures
Number of applications on decided time The cost for one applicant Performance of recruited person Number of application received
40 YMWGPK Udurawana, Lecturer, Faculty of Management Studies, Rajarata University of Sri Lanka - 2011

Lecturer.2011 . Rajarata University of Sri Lanka .Alternative to Recruitment Overtime Facility Outsourcing Temporary Employment 41 YMWGPK Udurawana. Faculty of Management Studies.

Rajarata University of Sri Lanka . Lecturer.Selection  The process of making the choice of the most appropriate person from pool of applicants recruited to fill the relevant job vacancy  Most Appropriate Person  Most Qualified Person 42 YMWGPK Udurawana. Faculty of Management Studies.2011 .

Rajarata University of Sri Lanka .Selection Process Evaluation of applications R E J E C T I O N Test Interview Background Investigation Medical Test S E L E C T I O N 43 YMWGPK Udurawana. Faculty of Management Studies. Lecturer.2011 .

Faculty of Management Studies.2011 .Effectiveness of Interviews      Prior knowledge about an applicant Attitude of the interviewer The order of the interview Negative information The first five minutes 44 YMWGPK Udurawana. Rajarata University of Sri Lanka . Lecturer.

Types of Interview        Individual Interview Panel Interview Structured Interview Unstructured Interview Mixed Interview Problem Solving Interview Stress Interview 45 YMWGPK Udurawana. Rajarata University of Sri Lanka . Faculty of Management Studies.2011  Interview errors can be seen as the major disadvantage . Lecturer.

Faculty of Management Studies. Rajarata University of Sri Lanka .2011 .Interview’s Error  Interviewer Errors        Hallow Effect Over emphasis on one criteria Leading Questions Pressure to hire Personal prejudice Interviewer domination Poor job knowledge 46 YMWGPK Udurawana. Lecturer.

Faculty of Management Studies.2011 . Lecturer. Rajarata University of Sri Lanka .Interview’s Error  Interviewee Errors       Conflict answer Time consuming Showing one thing doing another thing Not listener Influence of non verbal behavior Pressure to hire 47 YMWGPK Udurawana.

Employee Test        Intelligence Test Achievement Test Aptitude Test Personality Test Practical test Mind Style Questionnaires (MSQ) Assessment Centre . Faculty of Management Studies.A programme lasting for one or several days and using multiple methods of selection and multiple assessors to determine the suitability of candidates for particular job vacancies 48 YMWGPK Udurawana. Rajarata University of Sri Lanka . Lecturer.2011 .

Faculty of Management Studies. Rajarata University of Sri Lanka .Background Investigation      Check references Past employment Behaviors Academic Finance  Medical Test It is a formal investigation of applicant physical and mental fit for the job 49 YMWGPK Udurawana. Lecturer.2011 .

Rajarata University of Sri Lanka . at right time. for right job.2011 .Hiring  Hiring is the process of appointing the selected candidate to the post/job which is vacant  It involve s placing the selected employee on the right position of the jobs  This process is normally vested in the top management of firm  Highly responsible to get right person. in right way 50 YMWGPK Udurawana. Lecturer. Faculty of Management Studies.

Hiring Process Preparation Appointment Letter Notification to Appointees Acceptance Follow Up Reject Appoint from Waiting List Enter in to the Employment Contract. Lecturer. 51 YMWGPK Udurawana. Rajarata University of Sri Lanka .2011 . Faculty of Management Studies.

Probationary Period A selected period to prove certain capability for job before confirmed  Confirmed employee become permanent  Both party can terminate at short notice  After probationary period. Lecturer.2011 . evaluation can done and. Faculty of Management Studies. Rajarata University of Sri Lanka .  Confirmed  Extend period  Terminate 52 YMWGPK Udurawana.

planned attempt  Informal – Not Planned and it is ad hoc 53 YMWGPK Udurawana.2011 . Lecturer.  It can be a Formal or informal way  Formal – Systematic.Employee Induction  Induction is the HRM function that systematically & formally introduce new employees to the organization and its task. Rajarata University of Sri Lanka . Faculty of Management Studies.

firm culture Reality shock – Expected vs.2011 .Objectives/Importance of Induction          Reducing the cost and inconvenience Increasing commitment (work hard) Cultural shock – person vs. Lecturer. absenteeism. Faculty of Management Studies. turnover Strong labor management relationship Accelerating progress up the learning curve Speeding up socialization & increased loyalty Reduce grievance & eliminate wastages 54 YMWGPK Udurawana. Rajarata University of Sri Lanka . Actual state Reduced tardiness.

Training  Training is the formal and systematic modification of behavior through learning which occurs as a result of education. Rajarata University of Sri Lanka . and motivation of employee in a direction to increase organizational goal attainment. 55 YMWGPK Udurawana. development and planned experience. knowledge. Lecturer. instruction.  Training is the systematic process of altering the behavior. Faculty of Management Studies.2011 .

2011 . Lecturer. Faculty of Management Studies. Rajarata University of Sri Lanka .Objectives of Training  Develop the right skill & competencies of employee and improve their performance  Help people to grow with the organization  Reduce the learning time of employee to achieve success and ensure fully competent and economical as possible 56 YMWGPK Udurawana.

Lecturer. Rajarata University of Sri Lanka .2011  Special Practical Assignment . method to train the job holder 57 YMWGPK Udurawana. assignment. Faculty of Management Studies.Training Methods  Apprentice (Beginner) Training  Job Rotation New employee train with his job activities using his immediate boss or other trainer JR is shifting an employee from one particular job to another to provide proper training (identify strength & weakness of each units and its task) Arrange a practical task.

cognitive skills through ideal job related behavior  Vestibule (Hall) Testing Training is given in an artificial place considering expected aspect of training 58 YMWGPK Udurawana.2011 . Lecturer.Training Methods…  On the Job Training Method Training is given by allowing the trainee to perform the duties of job.  Behavioral Model Training It focuses on teaching interpersonal skills. Rajarata University of Sri Lanka . Faculty of Management Studies.

Lecturer. Rajarata University of Sri Lanka .  Lectures Verbal. written presentation to deliver the job knowledge 59 YMWGPK Udurawana.2011 .Training Methods…  Outside Seminars Organize to provide skill building training  Role paling A training techniques in which trainees act out the part of people in a realistic problem and who get training related to the job. Faculty of Management Studies.

Rajarata University of Sri Lanka . Faculty of Management Studies. Lecturer. behaviors and outcomes and discover employee present performance on the job.2011 . 60 YMWGPK Udurawana.Performance Evaluation  We can identify Performance Evaluation as a system of measuring. evaluating and influencing an employees’ job related attributes.

Outsider Peer. Subordinate Customers/Clients  How Often– Annually. Quartile. Self.2011 . Lecturer. Faculty of Management Studies.Cont…  Who should do – Immediate Supervisor Several Supervisors Other committee. Weekly 61 YMWGPK Udurawana. Rajarata University of Sri Lanka .

Faculty of Management Studies.2011 . Lecturer. Those are two types  Objective Criteria – These are quantifiable distinctly & easy to measure (Lecturer hour)  Subjective Criteria – That are not quantifiable distinctly & difficult to measure (Lecture quality) 62 YMWGPK Udurawana.Establish Criteria  Criteria is the dimension of performance upon which an employee is evaluated. Rajarata University of Sri Lanka .

Rajarata University of Sri Lanka . Faculty of Management Studies.2011 . Lecturer.PE Method…         Self Evaluation Method Essay Appraisal Method Examination systems Critical Incident Method Point Allocation Method MBO Evaluation 360 Degree Method Field Review Method 63 YMWGPK Udurawana.

2011 . Faculty of Management Studies. Lecturer. superiors. subordinated… Peer Employee Customer Head 64 YMWGPK Udurawana. customers. Rajarata University of Sri Lanka .360 Degree Method  This means employees are evaluated by each and every parts of the organization such as peers.

Example Communication Leadership Personal Development Adaptability Development of Others Production Relationship Task Management 65 .

2011 . Lecturer. Rajarata University of Sri Lanka . Faculty of Management Studies.PE Errors  Errors can be seen on  Evaluator Error – errors occurs base on the evaluator or evaluating panel  Employee Error –those are the errors of employee who are being evaluating  Process Error –that may be errors occur on used evaluation method or process. 66 YMWGPK Udurawana.

2011 . Rajarata University of Sri Lanka . Faculty of Management Studies.  Therefore EM is any change in the employment of worker which affected to his existed job characteristics and responsibilities. 67 YMWGPK Udurawana. Lecturer.Employee Movement  Employee movements refer to change that occur with regard to the employees.

Movement Type PROMOTION TRANSFER CHANGE RETRENCHMENT RETIREMENT DISMISSAL TERMINATE DEMOTION LAYOFF 68 YMWGPK Udurawana. Faculty of Management Studies.2011 . Rajarata University of Sri Lanka . Lecturer.

more rank. Rajarata University of Sri Lanka . authority. (Changes can be on responsibility. Faculty of Management Studies. Lecturer.2011 . more prestige. better job terms & conditions)  At least their must be increased of the pay and a more important gap title 69 YMWGPK Udurawana. pay.Promotion  Promotion is a upward change of the worker’s present position.

Faculty of Management Studies.Transfers  Transfer is the moving of an employee within the same jobs class or grade (From one job. place.2011  Transfers not be done on an imitation basis  It should done on the need of organization  No required frequently transfer for one employee as it breaks family consistency . Lecturer. to another job jobs. time. time and from office to field and also transfer can be offered as a promotion) 70 YMWGPK Udurawana. Rajarata University of Sri Lanka . place.

Rajarata University of Sri Lanka .  Characteristics of Layoff  Employer must have an inability to retain further employee on employment  Tentative stoppage & Re-employ in future 71 YMWGPK Udurawana.Layoff  Layoff is a temporary stoppage of the employment of an employee due to reason/s which generally not controllable by the management and which expects to re-employ them in future.2011 . Lecturer. Faculty of Management Studies.

Faculty of Management Studies.2011 . 72 YMWGPK Udurawana.Demotion  Demotion is the appointment of an employee who is currently working in the organization to a job that is lower than the job being performed by employee. Rajarata University of Sri Lanka . Lecturer.

Dismissals  Dismissal is moving an employee out of the organization permanently on disciplinary ground. Faculty of Management Studies.  Many disciplinary oriented behavior helpful to dismissals those are can be identified as follows 73 YMWGPK Udurawana.2011 . Lecturer. Rajarata University of Sri Lanka .

Termination  Termination is the complete end of the employment service of employee by the employer. Lecturer. Rajarata University of Sri Lanka . Faculty of Management Studies.  Reasons for Terminations The main reason is the resignation for termination.2011 . it can be done on employee or by employer 74 YMWGPK Udurawana.

Faculty of Management Studies. Lecturer.Employee decide to resign due to some reasons as Finding a another job Getting married / Gone abroad Physical Disability Job dissatisfaction Reading for study 75 YMWGPK Udurawana. Rajarata University of Sri Lanka .2011 .Resignation  It can be identified in different ways as follows  Voluntary Resignation .

Rajarata University of Sri Lanka .2011 .Retrenchment  It can be defined as the permanent termination of the employment of an employee due to surplus of employee within the organization. Faculty of Management Studies.  To manage the retrenchment firm can practice number of activities as follows 76 YMWGPK Udurawana. Lecturer.

bad health.2011 . Faculty of Management Studies. Rajarata University of Sri Lanka .disable. Lecturer. dice.Age  Forced Retirement Due to serious rules enumerated in the service agreement  Premature Retirement . 77 YMWGPK Udurawana.Retirement  Retirement can be describe as a leaving an employee from the organization after he has reached the age at which a person can be get.  Compulsory Retirement . and family problems before retirement age.

Compensation  Pay is defined as the basic reward an employee receives in return for worker contribution rendered for the organization where who work. goods and services provided by an employer to an employee in return for specific behavior offered by an employee 78 YMWGPK Udurawana. Faculty of Management Studies. Lecturer.2011 .  Compensation System refers to money. Rajarata University of Sri Lanka .

Rajarata University of Sri Lanka .2011 . Lecturer. Faculty of Management Studies.Components of a Pay System  It is of twofold  Direct pay .irreducible minimum of base pay  Merit pay which is contingent on performance  Incentive pay based on work done  Differed pay such as savings plans. stock plans  Indirect pay and other components 79 YMWGPK Udurawana.

payment for working at inconvenient and difficult areas  Overtime-for working extended hours  Bonus-gratuitous payment not directly earned by workers  Special allowances for special skills like language 80 allowances .Components of a Pay System     Indirect Pay Protection programs-medical and life insurance Pay for time not work-holidays Perquisites-free meals. housing and transportation  Premium.

2011 . Rajarata University of Sri Lanka . Faculty of Management Studies. qualified person  To retain appropriate employee  To motivate employee  To comply with legal requirements  To ensure equity  To control employee cost 81 YMWGPK Udurawana.Objectives of PM  To attract suitable. Lecturer.

2011 . Rajarata University of Sri Lanka .Equity Issues in PM  Fair pay is a pay that ensure equity. There are four type of equity  Primary Equity  Internal Equity  External Equity  Inputs Equity 82 YMWGPK Udurawana. Faculty of Management Studies. The equity is the degree of reasonableness. Lecturer.

Lecturer.Equity…  Primary Equity . It reveals similar pays for similar job and dissimilar pays for dissimilar jobs 83 YMWGPK Udurawana.If the pay received by the employee is sufficient to meat basic needs it is possible to say that pay possesses primary equity. Rajarata University of Sri Lanka . Faculty of Management Studies.  Internal Equity This is refers to degree to which the pay is related to the relative work of jobs.2011 .

Lecturer.  Inputs Equity If employees are getting enough fair salary against his inputs used to perform duties of job with enough performance it is the input equity. Faculty of Management Studies. 84 YMWGPK Udurawana.Equity…  External Equity Payment for certain job is to be equal to that of other similar jobs in other organizations. Rajarata University of Sri Lanka . specially in same sector or industry.2011 .

Faculty of Management Studies. Rajarata University of Sri Lanka .Factors Affecting for Pay          Trade Unions Legal Requirements Financial Ability Productivity Strategy Competence Competitive Pay Cost of Living Labor demand /supply 85 YMWGPK Udurawana. Lecturer.2011 .