HRM in FMCG Organizations in Sri Lanka … When we talk about the “Evolution of Human Resource Management (HRM)” usually we start from Taylor’s scientific management in early 19th century and end up with modern “Strategic Human Recourse Management”. However, if closely observe HRM systems in modern Fast-Moving Consumer Goods (FMCG) industry in Sri Lanka, still we can find different characteristics of different management styles which were prominent during different eras of industrial revolution.

Existing people management systems 

I have closely observed few multinational food manufacturing organizations (names withheld) in Sri Lanka, and it’s very difficult to make a clear-cut separation and say this organization purely has this type of people management system. I would suggest that, they have people management systems equipped with mixed characteristics of different management styles in different eras. Standardization concepts form Taylorism, personnel management & HRM approaches and strategic human resource management approaches are diversely visible in this organizations.

Are Taylor’s scientific management concepts still applicable??

Now a days all most all multinational and some local FMCG organizations are running towards approaches of automation and data exchange in manufacturing technologies and processes which include cyber-physical systems (CPS), the internet of things (IoT), industrial internet of things (IIOT), cloud computing, cognitive computing and artificial intelligence. We name this set-up as fourth industrial revolution, also referred as Industry 4.0. However still “Standardization” is the most prominent and the powerful word in the manufacturing environment. All most all problem-solving methods and tools, which are emerged form Lean manufacturing, Toyota Production System (TPS) Integrated Work Systems (IWS) in modern manufacturing environment, starts the problem-solving process by questioning about standards. “Do we have a standard for this?”. If it is not firstly recommended to fix the standard, (i.e. standard cleaning process, standard operating procedure (SOP), standard work group arrangement)

Elton Mayo’s “Human Relations Approach”

Features of Elton Mayo’s “Human Relations Approach” also can be identified in different people management practices in modern FMCG environment. To make their people (workers) happy, these organization have introduced different programmes and management practices such as transport facility, medical facility, flexible working hours, staff & family get-togethers and attractive family welfare packages. And direct towards creating more healthier and safer for their people. Now a days Health and Safety Managers, Employee Relations Managers (or HR business partners) and Reward Managers are playing major roles in FMCG organization’s human resource management function.

Abraham Maslow’s hierarchy of needs Vs FMCG Organization hierarchy

To improve FMCG organization performance, they are using different strategies to uplift employee motivation, as a major contributing factor. In 1943 Abraham Maslow has introduced hierarchy of needs with 5 levels. And current Rearward and Recognition (R&R) programmes and other employee benefits and services in current FMCG Organization environment are also showcased a correlation with this hierarchy of needs. Following Figure 01. will explain the linkage between hierarchy of need and organization hierarchy.

Figure 01. The linkage between hierarchy of need and organization hierarchy.

HRM Vs Cost reduction..

Current FMCG environment is highly competitive, and price of the product is very critical. Consequently, the only way to increase the profit margins is “cost reduction”. In this environment, organizational loss (waste) elimination process play a critical role. Employee skill gaps may involve with so many losses. Such as machine performance losses, product quality losses, material wastages etc.  Main intent of the Learning and organizational development function is to eliminate skill-based loss and build future readiness for the organizational growth.