Detrimental effects of poor human resources management: Case study from Sri Lanka

Modern business world has become so competitive due to rapid globalization. Many small and medium scale (SM) business organizations find it difficult to compete with multinational giants and to sustain in the business. This problem aggravates when Human Resources (HR) is managed poorly in organizations, human resources in third world, especially in South Asian region is the most unpredictable resource. Many SM business organizations especially established in rural and remote towns in Sri Lanka have collapsed after few years due to HR related issues even though they had good capital investments and aggregated resources. Adoption of proper HR practices ensures the increased productivity, reduced wastes and that leads to economic success and its sustainability. Therefore, this research presents a framework to visualize the detrimental effects of poor HR practices in SM business organizations in Sri Lanka. The developed framework was validated by a case study done in Badulla district, Uva Province, Sri Lanka. The methodology consists of several steps. Initially a structured questionnaire was developed in order to identify grievances of the HR. Next test trial was carried out with selected sample to fine tune the questionnaire and preceded with detail survey 80% of employees of the selected organization. The issues and limitations were drenched out through this analysis.