Bridging Tradition and Strategy: Rethinking Promotion Systems in Sri Lanka’s Public Banking Sector
Introduction
In Sri Lanka’s government banking sector, promotions have long been based on circulars, seniority, and union agreements. These systems were built to maintain fairness and order. However, with new expectations and global changes in Human Resource Management (HRM), the old system now faces pressure to evolve. The question is: how can public banks move from a traditional Personnel Management (PM) style to a more strategic HRM approach that values both fairness and performance?
From Circulars to Strategy: Understanding the Challenge
Most promotion systems in public banks are guided by government circulars and collective agreements. This creates a rule-based and structured process that reflects the pluralist approach of PM — one where management and unions both influence decisions. Seniority and service years are often the main criteria, ensuring equality but sometimes ignoring individual ability or innovation.
In modern Strategic Human Resource Management (SHRM), promotions are not just administrative tasks but part of a bigger strategy. Using the Harvard Model of HRM (Beer et al., 1984), we can see how factors like union influence, government rules, and management culture shape promotion policies. At present, Sri Lankan banks still focus more on compliance than on building skills or long-term capability.
The 'Harvard' Model (Beer et al., 1984). Source: Beer et al. (1984), Figure 2-1, p.16, Map of the HRM Territory.
The Way Forward: Balancing Merit and Seniority
Introducing interviews, performance reviews, and recognition of external qualifications can help create a fairer and more forward-looking promotion system. According to the Resource-Based View (Barney, 1991), skilled employees are a valuable and unique asset. Therefore, public banks should reward both loyalty and capability. HR professionals, as suggested by Ulrich (1997), must act as strategic partners who connect promotion systems to the bank’s long-term goals.
Conclusion
Sri Lanka’s public banks stand at a turning point. By modernizing promotion systems to recognize performance and skills, they can keep traditional fairness while encouraging growth and innovation. The goal is not to replace the old system, but to make it more strategic, fair, and future-ready.
References
Beer, M. et al. (1984). Managing Human Assets: The Harvard Framework for HRM. Harvard Business School Press.
Ulrich, D. (1997). Human Resource Champions. Harvard Business Press.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
It seems good
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DeleteGreat analysis! I appreciate the focus on modernizing promotion systems while maintaining fairness in public banks.
ReplyDeleteThank you! I also think fairness is very important while modernizing promotions.
DeleteA very relevant topic! Moving from seniority-based promotions to performance-linked advancement can drive motivation and accountability. However, transparency and clear metrics will be key to ensure employees still feel the system is fair.
ReplyDeleteThanks! Yes, clear metrics are key to keep the system fair.
DeleteA short and precise analysis that has brought into focus the needs for a strategic approach to HRM in public banks. The discussion has effectively linked theory to practice, emphasising a balanced focus on equity and performance.
ReplyDeleteThank you! I tried to show how theory links with real HR practices.
DeleteThis article skillfully frames the difficulty of updating promotion systems in Sri Lanka's public banking industry using HRM models (Harvard, Ulrich) and the Resource-Based View. It lays out the necessary transition from a seniority-based Personnel Management (PM) pluralist approach to a Strategic HRM (SHRM) approach that strikes a balance between capability and performance and fairness.
ReplyDeleteThanks! I agree, balancing capability, performance, and fairness is important.
DeleteA highly analytical and forward-thinking blog that effectively bridges traditional HR practices with modern strategic approaches. With minor refinements, it reaches near-publication quality.
ReplyDeleteThank you! I’m happy you found it analytical and forward-thinking.
DeleteThis is a thoughtful discussion about how traditional promotion methods can change with new HR ideas. It gives practical suggestions like performance reviews and interviews, which are very useful for the public banking sector.
ReplyDeleteThanks! I also think performance reviews and interviews help improve fairness.
DeleteAn insightful and well-balanced post! The conflict between strategy and tradition in Sri Lanka's public banking marketing has been brought to light by you. Ulrich's framework and the Harvard Model are linked, demonstrating a solid theoretical foundation. Your recommendation to combine seniority with merit is really sensible in the current environment, as public institutions are under pressure to be both equitable and performance-driven. This kind of modernization of promotions can help banks retain talent while maintaining their commitment to public service ideals.
ReplyDeleteThank you! Combining seniority with merit seems practical for public banks.
DeleteGreat Post. Rethinking promotion systems in Sri Lanka’s public banking sector is a smart move, especially when balancing tradition with modern strategic needs. This shift could lead to a more efficient, forward-thinking banking sector, better aligned with today’s challenges and opportunities.
ReplyDeleteThanks! Yes, balancing tradition with strategy can improve efficiency.
DeleteAs someone working in hospitality, I see a lot of parallels between the promotion challenges in Sri Lanka’s public banking sector and those in hotels. In both industries, seniority and tradition have long shaped career growth, often ensuring fairness but sometimes overlooking talent and innovation. In hotels, we’ve learned that recognizing performance, skills, and external qualifications — alongside loyalty — creates a healthier culture where staff feel valued and motivated. A promotion system that blends dignity with capability doesn’t just benefit employees; it directly enhances service quality and guest experience. For public banks, moving from circulars to strategy is not about discarding tradition, but about making promotions a lever for growth, innovation, and long-term trust — much like how hotels must evolve to stay competitive in a global market
ReplyDeleteThank you for sharing your thoughts! I agree that balancing tradition with performance is important, and a more strategic promotion system can really help both public banks and other service sectors grow with confidence.
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