Role Transition of HR Professionals in the Sri Lankan Banking Sector: A Study

The importance of managing human resources effectively and efficiently has increased in the modern business world with the recognition of human capital as a factor for gaining sustainable competitive advantage. Hence, the role of Human Resource (HR) department has transformed from a traditional administrative role to a business partner role. This study aims to identify whether the transition has happened in the Sri Lankan context. The main objectives of the study were: to find out to what extent the new HR roles are being practiced; and to identify which role is more prominent in Sri Lanka. The study focused on the banking sector. The sample comprised 10 private and public commercial and non-commercial banks. The primary data was collected through two questionnaires measuring HR professionals’ and non-HR professionals’ perception of the practice of HR roles. The findings revealed that HR’s new roles—strategic partner, administrative expert, employee champion and change agent, are being practiced at a satisfactory level. The most highly practiced role was the administrative expert role. The results show a perception gap between the HR professionals and non-HR professionals in relation to the employee champion role in the banking sector. The study identified that the transition from traditional HR roles to new roles has occurred in the Sri Lankan banking sector. However, participation in the strategic roles has not been to the same extent as the administrative roles.