WFPMA

REGIONAL ECONOMIC OUTLOOK

For this year until 2007, the overall outlook for the region will depend heavily on developments in the world economy as a whole--particularly in major industrial countries and China. The prospects for growth in major industrial countries and for world trade remain relatively optimistic. Domestic market conditions have become stronger over the past two years in most countries.

In spite of the confident regional outlook, the economic environment could become much more dismal over the next three years, and depends largely on how the current uneven expansion among major world economies affects key economic variables across the globe. Stronger growth in relatively energy-intensive countries, particularly China and the US, points to continued high oil prices and an intensified global imbalance.

The Asian Development Bank (ADB) says that while the region has built up significant resilience against external shocks, many economies remain vulnerable, particularly some of the poorer ones.

ADB assumptions indicate only a moderate slowdown of average GDP growth for the region as a whole to 6.5-6.9% (7.1-7.5% on the basis of purchasing power parity weights). Average GDP growth in East Asia will be in the range of 6.7-7.2% as the Chinese economy experiences only a mild slowdown while the economies of Hong Kong, China and Taipei, China perform somewhat better than the average of the past 4 years. In Southeast Asia, average GDP growth is forecast at 5.4-5.9%, higher than the average of the past 4 years, since most countries are projected to perform markedly better. ADB also notes that for Indonesia, the most populous country in the subregion, this is a very positive development.

The ADB also projects that in South Asia, growth is projected at 6.2-6.9%, substantially higher than historical averages, largely reflecting continued robust growth in the Indian economy, which accounts for about 80% of the subregional average. In Central Asia, growth rates, though fluctuating widely due to developments in the energy sector in some countries, are expected to settle to more sustainable levels as the effects of economic transition fade. In the Pacific, GDP growth rates will remain on average at around 2%.

Regional income growth over the past few years has boosted consumer confidence and spending. Investor sentiment is strengthening in many major economies of the region. The ADB estimates that the region will remain a preferred investment location, provided that countries can enhance or at the least keep their competitive advantage. Thus, increased economic, governance, and administrative reforms, and improvements to infrastructure, will be particularly important. Investment rates are expected to average about 30%.

Domestic demand’s effects to growth could however, be negatively affected by inflationary trends. Higher interest rates would particularly affect countries where household or public debt is high, including PRC, Indonesia, Republic of Korea, Kyrgyz Republic, Philippines, Sri Lanka, Tajikistan, and Thailand.
Source: ADB

APFHRM UPDATE

o APFHRM held its Council and Delegates meeting in Sydney, Australia on June 5, 2005 attended by nine (9) country representatives.
o Some of the major projects of the Federation include:

1. APFHRM booklet – outlining the profile of the Federation to be used for promotion purposes.
2. APFHRM website – another information source that complements the booklet. This is also to be used for promotion purposes.
3. Regional Conference – in Chennai, India, 1st week of December – this is an annual conference which will invite foreign delegates from Asia-Pacific.
4. Asia-Pacific Award – nominations will be forwarded to the November Council and Delegates meeting and a decision will be made. Awarding will be integrated with Singapore’s National HR Awards Program.
5. World Congress – the Federation’s participation has been discussed in the Sydney meeting.
6. Study accreditation/certification practices in Asia-Pacific
7. Continuous effort undertaken to get China and Korea to join the APFHRM.


Australia

Overview

One of the biggest issues affecting the practice of human resource management in Australia at present is the proposed introduction of new federal workplace relations legislation. In the October 2004 Federal election, the Federal Coalition Government was re-elected with an absolute majority in both houses of parliament. This is the first time such a majority has occurred in several decades. One consequence of this win was an announcement by the Government that it was going to utilise its corporation’s power under the Federal Constitution to radically alter the workplace relations legislation when it took control of the upper house in July 05. Industrial relations is constitutionally the domain of the State Governments, therefore the proposal is controversial.

Regrettably, whilst the government has announced its intention, and has spoken about some proposed changes such as the removal of the rights of workers to claim unfair dismissal in businesses with staff of less than 100 for example, no draft legislation has yet been released. The government also proposes a reduction in legislated minimum working conditions, and appears to be committed to placing considerable emphasis back on individuals to negotiate with their employer. This has created a particularly difficult climate for business and has resulted in a great deal of speculation about the extent of the possible changes.

Unions in Australia have been concerned about the nature of the proposed changes, and have launched an aggressive response to the suggestions proposed. In the absence of any specific proposed legislation to refer to, it remains unclear as to whether the changes will be as radical as suggested, and it is also difficult to provide advice to the profession about effective implementation.

The proposed changes to workplace legislation follow announcements made in the Federal Budget in May 05 regarding changes to eligibility entitlements for unemployed and underemployed individuals. These ‘welfare to work’ provisions provide for restricted access for people on single parent allowances, disability pensions and age pension amongst others. The outcome of these changes will be to move people off welfare and into the workforce. The challenge for the HR profession in light of these changes is to facilitate the transition from looking for work through to meaningful employment for these individuals. The government is conscious of a labour shortage in Australia, and is actively pursuing means of increasing the numbers of people classified as being in the workforce. This will have the effect in the short term of increasing the unemployment figures, but it is anticipated that these will smooth out over time.


Diversity in Australia

Is there a conscious effort to encourage diversity?

The Australian Government is committed to helping businesses realise competitive advantage through making smarter use of the language skills, business networks, market knowledge and experience of their staff.

To view the AHRI 'Making Diversity Work' paper (2004) please click here

Australia’s multicultural policy promotes acceptance of and respect for our cultural diversity. It embraces our Australian-grown customs and the heritage of Indigenous Australians, early settlers, and the diverse range of migrants coming to this country. It supports the right of each Australian to maintain and celebrate, within the law, their culture, language or religion.

Department of Immigration and Multicultural and Indigenous Affairs website:
www.dimia.gov.au

As part of the Australian Government’s multicultural policy, the ‘Diversity Works’ programme has been implemented by the Department of Immigration and Multicultural Affairs to encourage and support Australian organisations and companies to use the diversity available in their workforce to optimise performance, promote innovation and connect with their broader customer base and business partners and as a key enabler of business success. The programme encourages the elimination of prejudice and discrimination to allow participation of culturally and linguistically diverse employees in the workplace.

Diversity works website: www.diversityaustralia.gov.au

If so, why? What is the level of diversity in Australia?

23.1% (4.1 million) of Australians were born overseas.
52.1% of migrant Australians speak English only
37.4% speak another language and speak English very well/well
10.5% speak another language and speak English not well or not at all

Over 200 languages were reported as being spoken by Australians in the 2001 Census with the most common being English, Italian, Greek, Cantonese, Arabic, Vietnamese and Mandarin.

25% of Australian workers born overseas (15% from non-English speaking countries)
29% of small businesses in Australia are owned/operated by people born overseas.

Department of Immigration and Multicultural and Indigenous Affairs website:
www.dimia.gov.au


What are the special issues in managing diversity in Australia?

Indigenous Australians

“The vision is of a whole-of-government approach which can inspire innovative national approaches to the delivery of services to indigenous Australians, but which are responsive to the distinctive needs of particular communities. It requires committed implementation. The approach will not overcome the legacy of disadvantage overnight. Indigenous issues are far too complex for that. But it does have the potential to bring about generational change.”
Dr Peter Shergold, Secretary, Department of the Prime Minister and Cabinet, 20 April 2004.

The Community Development Employment Project provides employment and training opportunities for Indigenous Australians, who voluntarily forgo their income support from Centrelink. CDEP also offers opportunities for Indigenous people and communities to establish their own businesses to create employment.

Projects are managed by Indigenous organisations and communities in remote, regional and urban regions right across Australia for over 36,000 participants.
www.workplace.gov.au

Regional migrant employment

From 1 July 2005, regional employers will have access to a database of migrants willing to work in regional and low growth areas – these migrants are awarded an additional 10 points under the Skilled Independent Regional (SIR) Visa to assist them with their application process.

Department of Immigration and Multicultural and Indigenous Affairs website.
www.dimia.gov.au


AHRI Overview

o AHRI’s membership has remained static throughout 2005, with approximately 10,500 individual financial members currently. We are entering our major membership renewal period throughout July, August and September.

o AHRI has recently formed an alliance with the newly formed Fiji Human Resources Institute (FHRI). Members of the Institute will be able to access AHRI member benefits and services as part of their membership of the FHRI, thereby assisting the newly formed association to attract members and increase their strength in the region.

o The AHRI National Convention was held in Sydney in June and attracted record numbers of visitors with over 2,500 visitors, delegates, exhibitors and speakers attending. A highlight of the event was the meeting of the APFHRM delegates who attended the event. There were 14 members representing nine countries.

o AHRI’s professional accreditation model has been in place now for 12 months. Over 16% of the total membership have upgraded to Fellow, or Certified Professional status, representing an increase of over 100% of members in each category. This indicates significant membership support for the new model.

o AHRI’s tertiary accreditation process had the second round of applications in July with over 45 courses being submitted for accreditation, with all but one course approved in this round. After two formal review periods, there are now over 80 HR courses accredited by the Institute which represents an excellent outcome for the Institute. To date, only six universities have not applied for accreditation, and several of these have indicated that they are preparing their courses for the next round of accreditation.

o AHRI and the Australian Graduate School of Management AGSM) have recently been successful in securing over $230,000 in funding to support a major, three year research project. The project will be conducted across the mining, retail banking and health sectors and will examine HR practices in high performing organisations. AHRI has several other research projects under way currently and is seeking government funding to support these projects.

o AHRI has had considerable success in running a range of specialised workshops across the country, and continues to balance the member organised activities such as special interest groups and state council activities with the educational opportunities developed by national office. Examples of some successful topics include Strategy for HR, Age Management, Development of Financial Literacy for HR and Measuring, Reporting and Leveraging HR.


China

I. Brief General Economic Profile

CHINA

a) China achieved real GDP growth in:

HONG KONG

a) The notable growth momentum of the HK economy continued into the first quarter of 2005, with GDP growing solidly further by 6.0% in real terms, following a strong 8.1% growth in 2004. On a seasonally adjusted quarter-to-quarter comparison, GDP expanded for the seventh straight quarter, by 1.5% in real terms in the first quarter of 2005.



b) The labour market improved notably further along with the economic upturn, with total employment rising to an all-time high in the first quarter of 2005. The seasonally adjusted unemployment rate fell to a 43-month low of 5.7% in the three months ending May 2005.



II. Diversity
- The subject matter was first discussed at the HKIHRM Annual Conference last year by HSBC.
- Legislation: There are already some non-discriminatory related ordinances (Sex Discrimination Ordinance, Disability Discrimination Ordinance & Family Status Discrimination Ordinance) in HK. The Government announced in June 2003 its decision to legislate against racial discrimination and to issue a consultation paper to seek public views.
- The Institute submitted the members’ views on the subject to the Home Affairs Bureau last Dec:
o The HR community, as a profession, is committed to promote a non-discriminatory workplace by means providing the right policies, adopting best practices and educating managers, employees and the community in general.
o While the profession supports the proposed legislation on racial discrimination, we are of the opinion that the law has to be specific rather than vague or open to misinterpretation, and to strike the right balance between facilitating successful business operations and protecting the rights of all parties. The profession is also concerned that an effective mechanism should be put in place to ensure proper enforcement of any proposed law.

III. Update on the HR Institute:

a) New President of HKIHRM
- Mr Lai Kam-tong, Group Human Resources Manager - Remuneration & Benefits of CLP Holdings Limited, has been elected President of the Hong Kong Institute of Human Resource Management (HKIHRM) for the coming year.

b) Accreditation
- The Institute’s Accreditation Initiative aims at setting standards for HR practitioners, and recognising their professionalism.
- First stage of the initiative consists of two parts: training and assessment on Employment Law, and CPD scheme.
- Pilot run of the Employment Law training will be on August 2005, while the proper training + assessment and the CPD scheme will be staged early in 2006.
- The Institute is seeking support from HR practitioners, major corporations, statutory organisations and the Government in order to establish a sustainable and market-driven accreditation framework.

c) Relocation of HKIHRM Office
- In May 2005, the Secretariat Office relocated to 15/F, 68 Yee Wo Street, Causeway Bay, Hong Kong.

d) Conference
25th HKIHRM Annual Conference “Back to Basics? – HKIHRM Jubilee Conference” (at Hong Kong Convention & Exhibition Centre, on Nov 8 and 9, 2005)


New Zealand

The following statistics have been drawn from the Household Labour Force Survey, March 2005 quarter.

“The seasonally adjusted Household Labour Force Survey (HLFS) results for the March 2005 quarter show a flattening of the recent strong growth in the labour market,” Statistics New Zealand said recently. The unemployment rate increased by 0.3 of a percentage point, to 3.9%, while the number of people employed rose only marginally (by 1,000) this quarter.'

In the March 2005 quarter:

o Seasonally adjusted employment rose marginally (by 1,000) to 2,055,000. o The seasonally adjusted unemployment rate rose to 3.9%		o The seasonally adjusted labour force participation rate fell slightly to 67.6%. o Seasonally adjusted total actual hours worked fell 1.8%.
	March 2005 quarter	Quarterly change	Annual change
Unemployment rate	3.9%	+0.3%	-0.3%
Unemployed	83,000	+7.9%	-5.1%
Employed	2,055,000	+0.0%	+3.4%
Not in the labour force	1,022,000	+0.6%	-1.7%
Labour force participation rate	67.6%	-0.1%	+1.0%

Source: Statistics New Zealand


Diversity

New Zealand recognises cultural diversity in a number of ways.
First, in terms of legislation, the Human Rights Act 1993 seeks to prohibit discrimination in all its forms.
Secondly, three government organisations deal with issues related to diversity and discrimination.

1. Human Rights Commission

The Human Rights Commission is an independent Crown entity charged with the administration of the Human Rights Act 1993. In December 2001 Parliament made significant changes to the Human Rights Act. These changes affected both the Human Rights Commission and the Office of the Race Relations Conciliator.

In the new Commission there is a Race and Ethnic Relations Unit. There is also a full-time Race Relations Commissioner who provides leadership and advice on race and ethnic issues to the Commission.

The grounds of race, colour and ethnic or national origin have always been covered by the Human Rights Act. If people experience discrimination on any of these grounds they continue to be fully protected by the Act and should contact the Commission for assistance.

The Commission also has the power to mediate disputes relating to unlawful discrimination on the grounds of sex and sexual harassment, marital status, religious belief, ethical belief, colour, race and racial harassment, ethnic or national origins, disability, age, political opinion, employment status and sexual orientation in the areas of employment, education, access to public places, the provision of goods and services, housing and accommodation, partnerships, qualifying bodies, organisations of employees and employers, vocational training and trade and professional associations.


2. Te Puni Kokiri/Ministry of Mäori Development

Te Puni Kokiri contributes to accelerating Mäori Development in four specific areas:
o Providing high quality advice to Government;
o Working with Mäori to establish development targets and build capacity;
o Monitoring and auditing programmes delivered by Mäori and mainstream agencies;
o Working with other Government departments and agencies to improve outcomes for Mäori.


3. The Ministry of Pacific Island Affairs

The Ministry of Pacific Island Affairs exists to promote the development of Pacific peoples in New Zealand.

The Ministry is to do this in a way that recognises and reflects Pacific cultural values and aspirations, so that Pacific peoples can participate and contribute fully to New Zealand's social cultural and economic life.

The Ministry has two main roles:

Policy advice - to provide high quality advice to Government and other government agencies on key policies and issues for Pacific peoples.

Communications - to communicate information and Government policy advice to and from Pacific communities and other government agencies.


Census snapshot: Cultural diversity

The thirty-first New Zealand Census of Population and Dwellings was held on 6 March 2001. The following snapshot highlights some of the key findings from tables prepared for the National Summary topic-based report published 28 March 2002.

How have people identified themselves in the 2001 Census?

Increasing ethnic diversity

o The census counted more people of Asian ethnicity than Pacific peoples ethnicity.
o Almost 240,000 or 1 in 15 people were of Asian ethnicity.
o Counts of people of Asian ethnicity have more than doubled between 1991 and 2001.
o There were 231,801 people of Pacific peoples ethnicity.
o The count of people of European ethnicity declined from 83 percent of the total in the 1991 Census to 80 percent in 2001.
o 1 in 7 people (526,281) are of Mäori ethnicity.
o Two-thirds of people of Asian ethnicity live in the Auckland region and 1 in 8 live in the Wellington region.
o Two-thirds of the people of Pacific peoples ethnicity live in the Auckland region.
o In the Auckland region, 1 in 8 people are of Asian ethnicity, 1 in 8 of Pacific peoples ethnicity and 1 in 10 of Mäori ethnicity.
o Nearly 9 out of 20 people in the Gisborne region are of Mäori ethnicity.



o The fastest growing of the top 50 ethnic groups in 2001 were:

7. The Gradings Panel regularly meets to review Professional Membership of the Institute.

8. The Institute carried out a nationwide Remuneration Survey Project, the results of which now are available to Members.

9. The Institute has increasing engagement with Government, which has led to the Institute being consulted on overall employment issues. The CEO of the Department of Labour has recently featured in Human Resources magazine. The Department was a co-sponsor of the 2004 HR Initiative of the Year Awards and is supporting the 2005 Awards. The Department has a regular column in Human Resources magazine.


The Philippines

The Philippines faced challenging economic environment both domestically and externally in the first half of 2005. Upward pressure on foreign interest rates, high world oil prices and slow export market growth all tested the Philippine economy’s resilience. GDP expanded by 6.1% in 2004 but slowed down this year to 4.6% in the first quarter of 2005, below the Government’s target of 5.3%-6.3% for the year.

Though economic growth slowed initially, several positive development helped push up the peso, balance of payments and the stock market; in the first five months of the year. Among others, fiscal policy measures aimed at reducing the budget deficit is on track and has garnered wide praise from international observers. The business process outsourcing (BPO) industry -- call centres -- continues to grow at a rapid pace due in part to the Philippines’ large English-speaking workforce. Annual remittances from overseas Filipino workers (OFWs) likewise moderate the private consumption slowdown and boosts the non-debt sources of foreign exchange reserves of the country.

On labour and employment, Philippine unemployment rate increased to 11.3% in January 2005 from 11% in January 2004, below the average 2004 rate of 11.8%. The weakened labour market can be attributed to the decrease in the labour force participation rate, which fell from 67.3% to 66.1%. Likewise contributing are the 1.1% decline in full-time employment, the 3.5% decline in wage and salary employment and the 18.4% expansion in the number of unpaid workers. On the other hand, growth in part-time employment exceeded that of full-time employment; with part-time work increasing from 2.1% to 62.6%. Labour force participation increased by only 6%, one of the lowest recorded incremental increases in the labour force in recent years. Underemployment fell to 16.1% from 17.5%. The number of employed persons increased from 31.55 million in January 2004 to 31.63 million in January 2005. Employment growth was recorded at 1.7% from the agriculture, fishery and forestry sectors, while the industry and service sectors suffered a loss of 1.4%. In wages, 10 out of 16 regional wage boards have announced increases in minimum wages by June 2005. In the National Capital Region (NCR), the minimum wage increased by Pesos 25, bringing it to Pesos 275. In the other nine regions, daily wages increases ranged from P11-P20.

The present challenge for the Philippine economy is to compete effectively for trade and capital in a globalised world economy, as well as attracting increased levels of investments to meet development goals to sustain a higher economic growth path.

Source: PEO: US Embassy


Diversity

Diversity is defined as the unique attributes that employees bring to the workplace – those most visible or commonly discussed such as gender, race, age, ethnicity, as well as those less visible or commonly discussed such as work-life issues, class/status, or sexual orientation.

Managing diversity in the workplace is basically still a new concept in the country. While a few multinational companies have clear policies on diversity, a great number of organisations still don’t realise the value of managing diversity as a key component of effective people management.

The more diverse the workforce, the richer the exchange of ideas. Variety helps create a workplace that is interesting, rewarding and fun.

However, it has been observed as a fast growing topic. Mediation or conflict management as a subject has caught the interest of more and more HR practitioners. This is the clear evidence of the felt-need of managing people’s differences more effectively. In the near future, we expect to see more seminars and learning events focused on managing diversity.


PMAP Update

o The 42nd Annual Conference will be held in Cebu City on September 28, 29, 30, 2005 with the theme: “Delivering Results Through Purposeful Actions”. Expected participation is 1,300 delegates. The innovation introduced in this year’s conference will be the creative keynote presentation and a dramatic closing ceremonies.

o PMAP will celebrate its 50th year next year. Right now preparations have started. A special commission was organized a few years back and will complete its work this year with its recommendation of how PMAP should look in the next 50 years. Other events to celebrate the anniversary are in the process of finalization.

o PMAP has started to roll out the Investor In People standard. In its promotion activities, this has been well-received by the business sector. IIP is the international quality standard focused on people.

o Annual Awards are in the process of completion. Within a month, the winners will be known: Employer of the Year Award, Personnel Programme of the Year Award, and Personnel Manager of the Year Award. The winners will be formally recognised during the Annual Conference.

o PMAP is a strong advocate of alternative dispute resolution more particularly mediation as a way of making more efficient the Philippine justice system. Four senior PMAP members have become part of the faculty of the Philippine Judicial Academy training retired Justices in how to become mediators.

o PMAP is in the process of applying for accreditation to run a 2-year Masters Programme in Human Resource Management. This will be in addition to the numerous short-term courses that are run regularly at the PMAP training centre.

o PMAP is pursuing its social responsibility by driving the creation of a National HR body which will formulate and implement a National HR Agenda aligned with the economic agenda of the country. PMAP has volunteered to take an active role in making this happen. There are two paths being undertaken: executive branch path, where an executive order could be signed by the President of the Philippines and legislative branch path where a bill has already been sponsored by a congressman. Once set up, PMAP will play a dominant role in managing the human resources of the country.


Singapore

I. Economic Performance
(Source: Ministry of Trade and Industry GDP Estimates for Second Quarter 2005)

The Singapore economy picked up in the second quarter of 2005. Advance estimates show that real gross domestic product (GDP) grew by 3.9% in the quarter compared to the same period in 2004. On a quarter-on-quarter seasonally adjusted annualised basis, real GDP expanded by 12.3%.

The manufacturing sector is estimated to have grown by 3.5% in the second quarter, marginally faster than the pace set in the previous quarter. Strong performance in the transport engineering cluster continued to support growth, as the contraction in biomedical manufacturing eased. The electronics and chemicals cluster experienced slower growth.

The construction sector continued to decline, but is estimated to have contracted by a smaller amount of 1.4% compared to the decline in the last quarter.

The services producing industries’ growth is estimated to be 4.2% in the second quarter, faster than that set in the first quarter. With the exception of the transport and communications sector, all other services registered faster growth. Slower growth in water transport and the communications segment weighed on the transport and communications sector.

The preliminary GDP estimates for the year 2005, including sectoral performances, sources of growth, inflation, employment and productivity is expected to be 2.5 to 4.5%.

Activities/Programmes
Year 2005 marks SHRI's 40 years of bringing HR to the fore. Various activities have been planned in 2005 and 2006 with the most prestigious and mega event to be the 11th World HR Congress Singapore 2006 where SHRI represents Singapore and the APFHRM in hosting the WFPMA Congress.

Events and Activities

(a) The Singapore HR Awards 2005 and SHRI 40th Anniversary Celebrations were held on 3 Jun 2005. The Singapore HR Awards 2006 will be held in conjunction with the Congress.

(b) Leading HR Summit to be held on 19 August 2005

(c) The Global HR Conference 2005 on 28 September 2005

(d) SHRI People Symposium 2005 on 24 November 2005

(e) The Singapore HR Accreditation on 24 November 2005

(f) 11th World HR Congress to be held in from 29 May to 1 June 2006


Sri Lanka

1. i. Brief General Economic Profile of the Country

Sri Lanka’s economy registered an annual growth of 5.4% in real Gross Domestic Product (GDP) in year 2004. The growth of over 5% is a reflection of the economy’s resilience to the many adverse shocks in the form of; the surge in international oil prices, a severe drought, floods and finally the tsunami disaster. The growth was largely supported by the strong growth in exports, consumption and investment as well as the continuation of the ceasefire.

Country’s per capita GDP exceeded US$1,000 for the first time. With this achievement, it is expected that Sri Lanka would make further progress in becoming an upper middle income country facing a new set of challenges.

The investment/GDP ration improved to 25 per cent from 22.1 per cent in 2003, entirely due to increased private investment. The domestic saving/GDP ratio remained on the same level.

Healthy developments in the Services and Industry sectors contributed to economic growth while the Agriculture sector faced a setback due to adverse weather conditions.

The Gross National Product (GNP) grew by 5.2 per cent in real terms, compared to a growth of 6.6 percent in 2003.

While the country was preparing itself to face the challenges of growing macroeconomic imbalances, the year ended with an unexpected and unprecedented devastation caused by the tsunamis released by a massive under sea earthquake that occurred on 26th of December 2004.

Although the immediate impact of the tsunamis was limited to a few sectors, it significantly changed the macro economic outlook and posed new challenges in economic management in view of the large resource requirement for re-building the affected areas and providing relief to affected people on a sustainable basis within the shortest possible time.


ii. Diversity

Sri Lanka has a long history of diversity; being an island situated at a strategic point in the Indian Ocean, and a centre in the ancient International sea trade route; people in the form of settlers, merchants, pilgrims, missionaries and invaders came to this island from time to time. They brought along with them their language, religion, the socio-economic system and political beliefs. Hence for more than 2500 years this country acclaims a high range of diversity. Race, religion, language and the socio economic areas are identified as the major aspects of diversity.

There are the Sinhalese, Tamils, Muslims, the Burghers and a few other minority ethnic groups living in this country. The Sinhalese are the majority of the population which is close to 79%. Sinhala is the state language and is spoken by the majority; Tamil is declared as an official language and English is very popular and wide spread, used for educational, commercial and administrative purposes throughout the country. Buddhism is the religion of the majority of the Sinhalese, while a number of Sinhalese, as well as Tamils and Burghers are Catholics or members of the other denominations of Christianity. Hinduism and Islam are also given a very prominent place among the religions of the country.

There is no discrimination in the case of gender differences. Males and females hold equal status in the fields of administration and other fields of employment.

The issue of diversity is not simply about ethnicity, caste, creed, gender, disability or age ; it is about open mindedness, embracing non conformity and respecting individuals and all types. We believe our country is a rich and a diverse place, full of interesting cultures and people, who should be treated with respect and equality; with no discrimination. Sri Lanka is a country where great unity prevails in extreme diversity.

Is there a conscious effort to encourage diversity?

Diversity is considered a unique source of opportunity. Therefore conscious efforts are taken to encourage diversity and to look into its positive aspects.

To reach this objective steps are initiated both by the public and the private sector. The constitution has specifically described acts and laws to protect and uphold the people: there by the importance of each individual while maximising their potential and inspiring them is assured.

The Government and the organisations concerned are encouraging society by evaluating and informing them about the necessity of better values and behaviour for peaceful co-existence.

Both political and business leaders display a great commitment to diversity at national and international level.

Managing diversity

It is important to introduce diversity training in the workplacce, especially in a highly diversified country such as Sri Lanka. This should be done mainly through awareness programmes.

The establishment of informal/formal monitoring systems to manage diversity is very necessary. Furthermore, establishing management accountability for diversity at various levels is needed.

A national diversity commission will institutionalise the management of diversity and function as a coordinating body on all diversity issues.

Emphasizing diversity in succession planning and promotion will ensure and safeguard the interests of the country and its people and avoid many areas of conflicts.


iii. Update on the HR Institute

Founding Date

The IPM Sri Lanka was founded in the year 1959 and incorporated by an act No. 24 Parliament in 1976


Activities & Programmes

o Foundation Level

o Certificate Level

o National Diploma in HR

o Arrangements have been made to commence a two year Study programme leading to the “IPM” Professional Qualification in Human Resource Management.

o A Masters of Management Degree Programme in Human Resource Management in association with the University of Southern Queensland (USQ), Australia is now in progress.

Stage II of the Secretariat Building

Foundation stone was laid for the Stage II of the Secretarial Building on 5th July 2005.

The five storey new construction will be amalgamated with the existing four storey building to accommodate a large Auditorium, a computer Laboratory, a learning centre with enhance facilities etc.

Certificate Award Ceremony

A certificate award ceremony was held on 12th May 2005; around 900 students received their certificates for successful completion of the study programmes at different levels.

Corporate Social Responsibility

Members & well wishers of IPM painted a ward of the National Hospital, Colombo on 25th June 2005 as a corporate social responsibility project. A Blood donation campaign is to be organised in the near future.

National HR Conference & HR Service Providers’ Exhibition 2005

National HR Conference & HR Service Providers’ Exhibition 2005 was held on 6th and 7th July 2005. Mr. Geoff Armstrong, CBE, President, World Federation of People Management Associations and Director General, the Chartered Institute of Personnel & Development, UK was the Chief Guest. The theme of the Conference was “People –The Leading Edge in Business”

Job Placement Centre

Arrangements have been made to establish a job placement centre to link job seekers and job suppliers. Job seekers would comprise students, members and the public and the job suppliers would be the public and private sector organisations. This unit will run as a profit center for IPM.

Hon. Membership

The Institute conferred Hon. Membership on three eminent personalities who have rendered yeoman service to the HR field.

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