Human Resource Management and Change Management
Human Resource Management
and Change Management have become two of the most critical pillars of
organizational success, especially in today's rapidly transforming business
environment. With digitalization, economic uncertainty, and rising employee
expectations, Sri Lankan organizations increasingly recognize the importance of
managing people and change strategically. This strategic approach is best
understood through the lens of Strategic Human Resource Management, which
posits that HR policies must be aligned with an organization's strategic goals
to drive performance (Schuler & Jackson, 1987). Whether introducing new
technologies, restructuring teams, or shifting workplace culture, HR plays a
central role in ensuring these transitions happen smoothly and sustainably.
Why HRM & Change Management Matter
1. Minimizing Resistance Through Transparent Communication
One of the most
common challenges faced by organizations is employee resistance, a phenomenon
well-documented by change management pioneers like Kurt Lewin (1947). This
resistance is often caused by fear, uncertainty, or poor communication. To
overcome this, leaders must first "unfreeze" the current state.
Transparent and continuous communication is the most effective tool for this,
as it helps employees understand the purpose of change, reduces anxiety, and
builds trust (Kotter, 1996).
When Dialog
Axiata introduced new digital services and automated many internal processes,
employees initially felt unsure about how these changes might affect their
roles. To address this, the company conducted regular communication sessions,
offered demo workshops, and organized training programs. These efforts helped
employees gain clarity, build confidence, and ultimately embrace the
transformation. Dialog's approach showcases how open communication can turn
resistance into acceptance.
2. Ensuring Productivity During Organizational Transitions
Productivity often drops when organizations experience major changes. Effective change management helps maintain stability during such transitions by focusing on the human experience of change. William Bridges' (2009) Transition Model distinguishes between external change and the internal transition that employees must navigate. The "neutral zone" a period of uncertainty and reorientation is where productivity is most at risk.
During the
COVID-19 pandemic, Sri Lankan banks shifted rapidly to hybrid working models.
HR departments played a crucial role by setting clear performance guidelines,
ensuring employees had IT and remote-work support, and providing mental
well-being initiatives. Institutions like Sampath Bank and HNB were able to
uphold productivity and service quality because they actively managed their
employees' transition, providing the support needed to navigate the neutral
zone successfully.
3. Preparing Employees for Technological and Structural Changes
As industries
adopt new technologies, employees often need support in adapting to modern
systems and processes. This requires a focus on Human Capital Development,
which views employees' skills and knowledge as a strategic asset to be invested
in (Becker, 1993).
When retailers
like Softlogic Retail and Keels introduced advanced POS systems, e-commerce
platforms, and automated inventory tools, HR teams stepped in to train
employees, redesign job roles, and address concerns related to automation. This
investment in human capital ensured a smooth transition and improved overall
service delivery, directly linking employee development to strategic business
outcomes.
4. Overcoming Cultural Barriers in the Sri Lankan Workplace
Sri Lankan organizations often operate within hierarchical structures where employees hesitate to question authority or express concerns. This can become a barrier during change by stifling innovation and feedback. The key to overcoming this is building psychological safety the shared belief that a team is safe for interpersonal risk-taking (Edmondson, 1999).
When MAS
Holdings implemented new sustainability and compliance processes, HR
departments encouraged open discussions, feedback sessions, and team
involvement in decision-making. By respecting cultural norms while promoting
communication, MAS successfully built psychological safety, which reduced
resistance and improved employee engagement.
5.
Strengthening
Organizational Agility
Agility the ability to respond quickly to market changes is essential for modern organizations. This agility is impossible without a culture of psychological safety, as employees will not experiment or take risks if they fear failure (Edmondson, 1999).
Tech companies
such as Pick Me and Kapruka continuously upgrade their platforms to stay
competitive. Their HR teams focus on hiring adaptable talent, providing
continuous skills development, and encouraging a culture of experimentation.
This HR-driven agility, built on a foundation of trust and safety, enables
these companies to compete effectively both locally and internationally.
6. Supporting Employees Emotionally and Professionally
People are at the heart of every successful transformation. Effective HRM involves understanding concerns, providing emotional support, and ensuring employees have the skills and confidence to adapt. This is the core of managing the human "transition" that Bridges (2009) describes.
As global demand
fluctuated, several Sri Lankan apparel factories had to restructure teams. HR
departments supported employees by introducing counselling services,
re-skilling and up-skilling programs, career pathway planning, and grievance
handling mechanisms. These measures reduced stress, improved morale, and
strengthened organizational trust during uncertain times, guiding employees
through the "neutral zone" and into a "new beginning."
Challenges in HRM and Change Management
Despite these
powerful frameworks, organizations often face several obstacles:
Inadequate
training and resources
Unrealistic
timelines
Inconsistent
change implementation
Poor monitoring,
follow-up, and evaluation
Overcoming these
challenges requires strategic HR planning, leadership involvement, and a
culture that welcomes learning and adaptation (Hayes, 2022).
Conclusion
Implementing
HRM and change initiatives requires far more than technical adjustments it
demands strategic planning, effective communication, and continuous employee
engagement. A robust change management strategy ensures that employees are
supported, resistance is minimized, and transitions happen smoothly.
By
creating an environment where employees feel valued, informed, and prepared,
organizations can unlock the full potential of HRM systems and ensure long-term
success. Sri Lankan companies that embrace strong HR practices and proactive
change strategies will be better positioned to navigate uncertainty, enhance
performance, and build a resilient future.
References
Armstrong, M.
(2021). Armstrong's Handbook of Human Resource Management Practice (15th edn.).
London: Kogan Page.
Becker, G. S.
(1993). Human capital: A theoretical and empirical analysis, with special
reference to education (3rd ed.). University of Chicago Press.
Bridges, W.
(2009). Managing transitions: Making the most of change (3rd ed.). Da Capo
Press.
Bratton, J. and
Gold, J. (2017). Human Resource Management: Theory and Practice (6th edn.).
London: Palgrave Macmillan.
Boxall, P.,
Purcell, J. and Wright, P. (2007). The Oxford Handbook of Human Resource
Management. Oxford: Oxford University Press.
Dialog Axiata
PLC (2023). Annual Report 2023. Available at: https://dialog.lk.
Dessler, G.
(2020). Human Resource Management (16th edn.). Harlow: Pearson.
Edmondson, A. C.
(1999). Psychological safety and learning behavior in work teams.
Administrative Science Quarterly, 44(2), 350–383.
HNB (Hatton
National Bank) (2021). Sustainability & Annual Report. Available at:
https://hnb.net.
Hayes, J.
(2022). The theory and practice of change management (6th ed.). Pearson.
Keells (John
Keells Holdings PLC) (2022). Annual Report. Available at: https://keells.com.
Kotter, J. P.
(1996). Leading change. Harvard Business School Press.
Lewin, K.
(1947). Frontiers in group dynamics: Concept, method and reality in social
science; social equilibrium and social change. Human Relations, 1(1), 5–41.
MAS Holdings
(2022). Sustainability Report. Available at: https://masholdings.com.
PickMe Digital
Mobility Solutions (2023). Company Profile and Strategic Overview. Available
at: https://pickme.lk.
Sampath Bank PLC
(2021). Annual Report. Available at: https://sampath.lk.
Schuler, R. S.,
& Jackson, S. E. (1987). Linking competitive strategies with human resource
management practices. The Academy of Management Executive, 1(3), 207–219.
Softlogic
Holdings PLC (2022). Annual Report 2022. Available at:
https://softlogicholdings.lk .
Hi Rajitha, you have clearly illustrated how human resource management can shift from being purely administrative to becoming a strategic driver of change, particularly through your example during COVID-19. In modern organizations, HR is not just reacting to transformation — it is helping to lead it by aligning people, processes, and culture with evolving business goals. By emphasizing change as a constant, your article rightly underscores that HR’s role is not about short-term fixes, but about building long-term organizational capacity.
ReplyDeletehttps://shashie286615.blogspot.com/2025/10/freelancers-outsourced-staff-and-direct.html
How do you see the balance between flexibility and cultural integration evolving as organizations increasingly blend freelancers, outsourced teams, and direct hires?
Hi Laura,
DeleteYou've absolutely nailed the key takeaway HR is no longer just reacting to change but actively leading it to build lasting capacity.
And your question is spot on. It's the challenge every modern organization is grappling with. I believe the secret is to stop seeing flexibility and culture as a balancing act
and start seeing them as a partnership.
Instead of asking, "How do we protect our culture from freelancers?", the best companies are asking, "How can freelancers enrich our culture?".
They're doing this by making culture less about the office and more about how work gets done through shared digital tools, clear communication rules,
and a powerful mission that everyone can get behind, whether they're on a permanent contract or a six-month project.
It's about creating a strong core that gives everyone a sense of purpose, while giving managers the freedom to integrate different types of talent in the
way that makes the most sense for their team.
Rajitha, for pointing out the question I had planned to address to Shashi. Your insights on the subject were both inspiring and satisfying. Thank you!
DeleteExcellent overview of HRM's role in change management. The point about maintaining productivity during transitions particularly resonates with my service sector experience. The Dialog Axiata example highlights what works—regular communication sessions and hands-on training make all the difference. Your emphasis on transparent communication is spot-on; it's often where change initiatives succeed or fail at the ground level.
ReplyDeleteHi, Dharsha.
DeleteThank you for your thoughtful comment. I'm particularly glad that the point about maintaining productivity resonated with your experience in the service sector, as that's often where the pressure is felt most acutely.
You're absolutely right about the Dialog Axiata example. It's a powerful illustration that the "human" elements—like regular communication and hands-on training—are not just supportive activities but core strategic drivers of success.
Your final observation is spot-on: transparent communication is indeed the critical factor where change initiatives succeed or fail. Without that foundation of trust and clarity at the ground level, even the best-laid plans can falter. I appreciate you highlighting that crucial point.
This is a well written blog on overview of how HR shapes successful change. I really liked how you highlighted the people side rather than only focusing on processes. In my opinion, many organisations struggle because they communicate what will change but not why it matters for employees. A question that came to mind: is that do you think communication or leadership behaviour plays a bigger role in reducing resistance?
ReplyDeleteHi Shashi,
DeleteThank you for such a thoughtful comment. You've hit on a critical distinction that many organizations miss: communicating the "what" is easy, but explaining the "why" is what truly connects people to the change.
Your question about whether communication or leadership behavior plays a bigger role is a fantastic one. I believe they are not separate choices but two sides of the same coin, and one is hollow without the other.
However, if forced to choose which has the greater impact, I would argue that leadership behavior is the ultimate decider.
Here's why: You can have the most eloquent and transparent communication strategy in the world, but if employees see leaders acting in ways that contradict the message—or worse, not engaging with the change at all—the words become meaningless. Communication builds the expectation, but leadership behavior provides the proof.
Think of it this way:
Communication provides the roadmap for change. It tells people where they are going and, crucially, why they are going there—the very point you highlighted.
Leadership Behavior is the vehicle on that roadmap. It's the tangible evidence that the journey is real, that the leaders are committed, and that they are willing to lead by example.
Employees don't just listen to what leaders say; they watch what they do. Authentic leadership behavior is the most powerful form of communication because it builds trust, and trust is the single most effective tool for reducing resistance.
Thank you for raising such a provocative and important question that gets to the very heart of successful change management.
This is a very insightful overview of how HR leadership directly influences employee engagement in today’s changing business environment. I really like how you highlighted the shift from traditional HR roles to a more strategic and people focused leadership approach. The connection you make between engagement, performance, culture, and change is especially relevant for Sri Lankan organizations that are navigating digital transformation and rising workforce expectations. Your explanation makes it clear that engagement isn’t something that happens by accident it is the result of consistent communication, trust, and supportive HR leadership. This blog does a great job of showing why modern HR leaders must be proactive, empathetic, and aligned with the long-term vision of the organization.
ReplyDeleteThank you for such a wonderful and encouraging comment! It means a lot to know that the article resonated with you, especially regarding the challenges and opportunities for Sri Lankan organizations.I'm particularly pleased that you highlighted the connection between engagement, performance, and culture. You've articulated it perfectly modern HR leaders must indeed be proactive, empathetic, and aligned with the long-term vision to truly succeed. Your feedback shows a deep understanding of these critical shifts.
DeleteThank you again for your insightful words. It's a great reminder of why these conversations are so important for the future of work.
This is a clear and insightful explanation of why HRM and change initiatives must go beyond technical fixes. Your focus on strategic planning, communication, and employee engagement highlights the true drivers of successful transformation. Organisations—especially in Sri Lanka—that invest in these elements will be far more capable of managing uncertainty, reducing resistance, and building a resilient, high-performing future.
ReplyDeleteThank you so much for your thoughtful comment. You've perfectly captured the core message of the article.
DeleteI'm especially glad that the idea of HRM needing to "go beyond technical fixes" resonated with you. You're absolutely right focusing on strategic planning, communication, and employee engagement is what truly builds a resilient, high-performing culture capable of navigating uncertainty.
This article shows that change management and HRM are key to an organization’s success. The Sri Lankan cases, such as Dialog’s communication approach and MAS Holdings’ focus on culture, highlight that HR is not just about managing people but also about building resilience and agility. The strongest message is that trust, openness, and continuous support for employees are the real foundations of successful change.
ReplyDeleteThank you so much for your thoughtful comment. You've hit on the absolute core of the article's message.
DeleteI'm especially glad that the examples from Dialog and MAS Holdings resonated with you. You're absolutely right without that foundation of trust, openness, and continuous support, even the best-designed change initiatives are likely to falter. It's the human element that ultimately makes any transformation successful.
This blog offers a straightforward and practical discourse on HRM and Change Management. The text elaborates on the importance of communication, training and supporting employees when an organization is undergoing a change. The examples of Sri Lankan are used, which makes the argument more convincing and demonstrates the adequate exercise of the theory into the practice, i.e., Dialog Axiata, MAS Holdings, and Keells. Another aspect brought to the fore by the blog, on the role of HR in minimizing resistance and preserving productivity is also consistent with the thoughts of Armstrong and Bratton and Gold. The part on cultural barriers in Sri Lanka is particularly helpful as it mirrors on actual working dynamics. The issues enumerated in the end depict a realization that change is complicated and it needs to be planned. It would be better to correlate the discussion with a particular change model, yet on the whole, the post is concise, topical, and well-grounded.
ReplyDeleteThank you so much for your incredibly detailed and thoughtful comment. I truly appreciate you taking the time to provide such insightful and constructive feedback.
DeleteIt's wonderful to hear that you found the post straightforward, practical, and that the Sri Lankan examples helped make the argument more convincing. I'm also glad that the connection to established theorists like Armstrong and Bratton and Gold was clear.
Your suggestion to correlate the discussion with a specific change model is absolutely brilliant. It would undoubtedly add a stronger theoretical framework and provide a more structured lens through which to view the practical examples. That's a fantastic idea for a future post or an update to this one. Thank you for that excellent suggestion.
Feedback like yours is incredibly valuable for creating content that is both practical and academically sound. Thank you again for adding such depth to the conversation.
This article provides a comprehensive and practical analysis of the critical role HRM plays in facilitating effective change management in Sri Lankan organizations. By using concrete examples—from Dialog Axiata’s digital transformation to MAS Holdings’ sustainability initiatives—it clearly demonstrates how strategic communication, employee support, and agility enable organizations to navigate transitions successfully. The discussion of challenges alongside actionable strategies reinforces the importance of HR as a central driver of both organizational resilience and employee engagement.
ReplyDeleteThank you so much for your thoughtful and detailed comment. I truly appreciate you taking the time to share your perspective.
DeleteYou've perfectly captured the core message of the article. I'm especially glad that the emphasis on HR as a central driver of both organizational resilience and employee engagement resonated with you. You've articulated the goal perfectly effective change management isn't just about processes, but about empowering people to navigate transitions successfully.
Your point about the real-world Sri Lankan examples is also spot on. The goal was to show that these aren't just theoretical concepts but practical strategies that leading companies are using to build a more motivated and resilient workforce.
Your analysis is clear, thoughtful, and very well put together that blends theory with Sri Lankan workplace realities in a very practical way. Your use of real organizational examples like Dialog, MAS, and Sri Lankan banks makes the discussion feel grounded and relatable rather than purely academic. The flow is clear, and the way you connect HRM concepts to change management models shows strong understanding and thoughtful writing.
ReplyDeleteThat said, there’s room to make the piece even stronger. One area to enhance is the exploration of practical limitations when applying these frameworks, especially in SMEs or traditionally managed organizations. Many Sri Lankan companies still operate with limited HR capacity, hierarchical leadership styles, or informal cultures that slow down change efforts. Acknowledging these constraints and how HR teams realistically navigate them would give the discussion a more balanced, human-centered feel. You might also highlight
Thank you for your thoughtful and constructive feedback on my analysis of HRM and change management in the Sri Lankan context. I appreciate your recognition of the practical approach and the use of real organizational examples.
DeleteYou've raised excellent points about enhancing the analysis by exploring practical limitations. I completely agree that acknowledging the real-world constraints faced by many Sri Lankan organizations would add valuable depth and authenticity to the discussion.
Your suggestions are particularly insightful regarding,
SME challenges
Traditional management structures
Informal workplace cultures
Realistic navigation strategies
I believe incorporating these perspectives would indeed create a more balanced, human-centered discussion that better reflects the nuanced reality of the Sri Lankan workplace. Your feedback has highlighted how I can bridge the gap between theoretical frameworks and practical implementation challenges more effectively.
This is a really good post about how important HR is when a company is changing. I like how it talks about making sure HR strategy lines up with company goals, keeping everyone in the loop, and supporting workers so things go smoothly (Schuler & Jackson, 1987; Kotter, 1996). The examples from Sri Lankan companies such as Dialog Axiata, MAS Holdings, and PickMe show how HR can keep people from pushing back, keep productivity up, and make people feel safe when things are changing (Edmondson, 1999; Bridges, 2009). Focusing on training and knowing the company culture proves why it's important to plan ahead but also be understanding and get employees involved (Becker, 1993; Hayes, 2022). In short, this post gives HR managers useful advice and solid theories to help them through big changes.
ReplyDeleteThis is an excellent and insightful analysis of how HRM and Change Management shape organizational success in Sri Lanka’s evolving business landscape. The real-world examples beautifully demonstrate how theory translates into practical impact. The emphasis on communication, psychological safety, and human capital development is especially relevant for leaders navigating transformation today. A well-structured and valuable read.
ReplyDeleteHi Rajitha,
ReplyDeleteThis is a very comprehensive and practical discussion on the role of HRM in supporting change management. I particularly like how you’ve linked established theories like Lewin’s Change Model and Bridges’ Transition Model with real examples from Sri Lankan organizations such as Dialog, MAS, and HNB. The emphasis on psychological safety, communication, and human capital development really highlights the “human side” of change, which is often overlooked. One thing I wonder is, given the hierarchical culture in many Sri Lankan workplaces, how can organizations balance respect for tradition with the need for open dialogue and employee participation during change?
This article presents a concise and thoughtful overview of the crucial role Human Resource Management plays in guiding organizations through change. The emphasis on HR’s role in aligning people, processes, and culture with evolving business needs highlights its strategic importance. The discussion of employee support, communication, and effective workforce planning underlines how HR can facilitate smoother transitions. Overall, the post offers a meaningful perspective on effective change‑management practices within organizations.
ReplyDelete