Dilmah (Dilmah Ceylon Tea Company PLC)

Merrill J. Fernando dedicated his life to tea when in the 1950s, he saw
the concentration of ownership in the tea industry in the hands of a few
large corporations. This was leading to the commoditization of tea. He
decided that in the interest of tea drinkers around the world, and the crop
that his country produced with so much care and artistry, he would fight
this process of commoditization.
It took him nearly four decades and in 1988 he launched his own
brand – Dilmah. Dilmah tea company was the first producer owned tea
brand, and offered tea ‘picked, perfected and packed’ at origin. Unlike the
multi-origin blends that monopolized supermarket shelves, Dilmah
brought tea that is freshly packed at source and therefore rich in flavor
and natural goodness making it one of the finest teas of the world.
Dilmah is unique; a brand that is founded on a passionate
commitment to quality and authenticity in tea, it is also a part of a

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philosophy that goes beyond commerce in seeing business as a matter of

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human service. This is what makes Dilmah the first ethically produced tea.

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In 2005, Merrill and his sons Dilhan and Malik, pledged to follow the

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principles dictated by the 12 Principles of Dilmah in every aspect of their

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business and in the conduct of their workers, staff and management.
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(Annual report, Dilmah, 2018-19)
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Human Resources Management of an organization

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“HRM is the function performed in organization that facilitates the

most effective use of people to achieve organizational and individual
goals”. This article explores the objectives and functions of HRM and also
it tells about the activities of HR.
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HR, along with financial and materials resources, contribute to the

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production if goods and services in an organization. Physical and

monetary resources, by themselves, cannot improve efficiency or
contribute to an increased rate of return on investment. It is through the
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combined and concerned efforts of people monetary and material

resources are harnessed to achieve organizational goals. But these efforts,
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attitudes and skills have to be sharpened from time to time optimize the
effectiveness of human resources and to enable them to meet greater
challenges. This is where HRM plays a crucial role. Corporate, Professional,
Social and National are the four levels of significant Human Resources
Management.

Objectives of HRM

Objectives of HRM include ensuring availability of resources, easy

access to data, on-time payroll, ensuring compliances, etc. HRM objectives
are basically influenced by organizational goals and vertical. Objective of

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 HRM is to ensure a stable work environment with data at one place and
efficient operations.

• To improve the service rendered by the enterprise to society through

building better employee morale, which leads to more efficient
individual and group performance. Thus, HRM seeks to manage
change to the mutual advantage of individuals, groups, the
organization and society.
• To establish in the mind of those associated with the enterprise –
employees, shareholders, creditors, customers and the enterprise is
rendering the best service of which it is capable and distributing the
benefits derived fairly and contributing to the success of the
enterprise.
• Thus an organization can identify and satisfy individual and group
goals by offering appropriate monetary and non-monetary
incentives.
• To employ the skill and knowledge of employee efficiently and

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effectively that is to utilize human resources effectively for the
achievement of organizational goals.

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• To enhance job satisfaction and self actualization of employees, by
encouraging and assisting every employee to realize full potential.

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• To provides facility and condition of work and creation of favorable
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atmosphere for maintaining stability of employment.
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• To develop and maintain a quality of work life which makes
employment in the organization a desirable and social situation.
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Functions of HRM
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The goal of a human resource manager is to strengthen the

employer-employee relationship. This goal is supported by a variety of
functions within the human resources department and throughout the
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organization. Human resources (HR) professionals work together to

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develop employees' skills. For example, HR professionals advise managers

and supervisors how to assign employees to different roles in the
organization, thereby helping the organization adapt successfully to its
environment. In a flexible organization culture like Dilmah, employees are
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shifted around to different business functions based on business priorities

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and employee preferences. Human resources professionals also suggest

strategies for increasing employee commitment to the organization. This
begins with using the recruiting process or matching employees with the
right positions according to their qualifications and skills. Other than that
Human resources manager are responsible for following key things on HR
functions. These are some functions what Dilmah and also some other
organizations follow.

1. Workforce planning- Workforce planning is a process of analyzing

the current workforce, determining future workforce needs,
identifying the gap between the present and the future, and
implementing solutions so that an organization can accomplish its

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 mission, goals, and strategic plan.
2. Recruitment and Selection- Recruitment refers to the process where
potential applicants are searched for, and then encouraged to apply
for an actual or anticipated vacancy. Selection is the process
of hiring employees among the shortlisted candidates and providing
them a job in the organization.
3. Training & Development- This function allows employees to acquire
new skills and knowledge to perform their job effectively. Training
and development also prepares employees for higher level
responsibilities.
4. Performance management- Performance management is the
process of ensuring that a set of activities and outputs meets an
organization's goals in an effective and efficient manner.
5. Rewarding system- The reward system is a group of neural
structures responsible for incentive salience, associative learning,
and positively valanced emotions, particularly ones which involve
pleasure as a core component.

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Recruitment

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Recruitment refers to the overall process of identifying, attracting,

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screening, shortlisting, and interviewing, suitable candidates for jobs
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within an organization. Recruitment can also refer to processes involved in
choosing individuals for unpaid roles. These are the ways Dilmah approach
on recruitment internally and externally.
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Approaches to recruitment
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1. Internal Recruitment methods

• In house recruitment
• Internal recruitment services
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2. External Recruitment methods

• Outsourcing
• Employment agencies
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• Executive search firms(Headhunters)

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Internal Recruitment

Internal recruiting is the process of filling vacancies within a business

from its existing workforce. On the contrary, external recruiting is how a
business looks to fill vacancies from outside.

Advantages of internal recruitment,

Reduce time to hire - When recruiting externally, hiring teams find

candidates evaluate them and, if all goes well, persuade them to join their
company. All of which takes time. Conversely, internal candidates are

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 already part of your workplace, so the time you need to find and engage
those candidates is much less.

Shorten on-boarding times - Everyone needs some time to adjust to a new

role, but internal hires are quicker to onboard than external hires.

Cost less - Research has shown that external hiring may cost 1.7 times
more than internal hiring. This is because when hiring from within, you
usually don’t need to post ads on job boards, subscribe to resume
databases and pay for backgrounds checks.

Strengthen employee engagement - Promoting from within sends a

message that you value your employees and want to invest in them.
Giving employees more opportunities to advance their careers, or even
letting them move to other same-level positions that may interest them, is
good for morale.

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Disadvantages of internal recruitment,

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Create resentment among employees and managers - Employees who
were considered for a role could feel resentful if a colleague or external

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candidate is eventually hired. Also, managers are often uncomfortable
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losing good team members and may even go so far as to hinder the
transfer or promotion process.
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Leave a gap in your existing workforce - When you promote someone to

fill an open position, their old position becomes vacant. This means that a
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series of moves and promotions may ensue that could disrupt your
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business’ operations. Ultimately you may need to turn to external

recruitment in addition to your internal hire.
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Limit your pool of applicants - While your company may have a lot of
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qualified candidates for specific positions, this isn’t necessarily true for
every open role. For example, if a role is fairly new to your business, your
employees will have other specialties and may not be able to fill this skills
gap. Relying solely on internal hiring means you could miss the chance to
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hire people with new skills and ideas.

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Result in inflexible culture - Doing most of your hiring from inside your
business may result in a stagnant culture. This is because employees can
get too comfortable with the ‘way things are done’ and struggle to spot
inefficiencies and experiment with new ways of working. An inflexible
culture will be more problematic in leadership positions where employees
may need to advocate for change and improvements instead of relying on
established, inefficient practices. External hires are essential in shaking up
culture and offering a fresh perspective on existing problems.

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