The policy of wage and salary administration of public corporations in Sri Lanka

Abstract

P u b l i c C o r p o r a t i o n s have been used as a useful tool of implementing economic and s o c i a l p o l i c i e s of S r i Lanka during ast three decades. They have s c a t t e r e d among every major a c t i v i ty ea of the n a t i o n a l economy. But there i s now an atmosphere f c r i t i c i s m of P u b l i c C o r p o r a t i o n s . Host c r i t i c i s m s are centered n the shortcomings and the weaknesses i n v o l v e d i n the f o r m u l a t i on d implementation of p o l i c i e s of P u b l i c C o r p o r a t i o n s . A g e n e r al round of agreement of these- vafcious c r i t i c i s m i s t h a t the o l i c i e s of P u b l i c C o r p o r a t i o n s are not formulated and implemented n an e f f i c i e n t manner and at s u f f i c i e n t l e v e l. In t h i s study, an attempt i s made to show the s i g n i f i c a n ce f the p o l i c y making process of P u b l i c C o r p o r a t i o n s . ' i n S r i Lanka, tie scope of the problem was however r e s t r i c t e d to the p o l i cy f wage and s a l a r y a d m i n i s t r a t i o n , and the study was l i m i t ed a macro l e v e l r e s e a r c h , and the d u r a t i o n was l i m i t e d to the r i o d a f t e r 1977 for the purpose of c o l l e c t i n g data. The present t h e s i s was prepared i n two p a r t s . The f i r st rt of the t h e s i s p r o v i d e s the background necessary for the lerstanding of the problem, g i v e s a b r i e f d e s c r i p t i o n r e g a r - ng'.the P u b l i c C o r p o r a t i o n s e c t o r of S r i Lanka, t h e i r o b j e c t i v es nd the t h e o r e t i c a l survey p e r t a i n i n g to the p o l i c y of wage and lary a d m i n i s t r a t i o n , The f i n a l s e c t i o n of t h i s part presents e study framework; The second part i s the key s e c t i o n of t h i s t h e s i s . The f i r st c t i o n of t h i s part d e a l s w i t h a d e s c r i p t i o n about the f i e ld vey. This part c o n t a i n s an examination of the r e l a t i o n s h i p etween the p o l i c y of wage and s a l a r y a d m i n i s t r a t i o n and t he actors from v a r i o u s aspects , such as economic, s o c i a l , p o l i t i c al and managerial. This was dene by t e s t i n g four hypotheses. The s t a t i s t i c a l a n a l y s i s was usee to t e s t the h y p o t h e s e s . F i n a l l y, attempt was made to d i s c o v e r the n a t u r e of the e x i s t i n g p o l i c y )f wage and s a l a r y a d m i n i s t r a t i o n of P u b l i c C o r p o r a t i o n s and e f f o r t was a l s o made to f i n d out t h e degree of c o n t r i b u t i on )f these p o l i c i e s tc the o b j e c t i v e s of P u b l i c C o r p o r a t i o n s and determine the degree of s u i t a b i l i t y of these p o l i c i e s. I t appears that there i s no p u r p o s e f u l l y formed p o l i c i es the P u b l i c C o r p o r a t i o n s e c t o r . I t i s b e i n g c l o s e l y r e l a t ed the f a c t o r s free: the p o l i t i c a l aspect and t h e r e f o r e , the :her important o b j e c t i v e s are not taken i n t o c o n s i d e r a t i on a d e s i r a b l e extent. In c o n c l u s i o n the p o l i c y of wage and .ary a d m i n i s t r a t i o n of P u b l i c C o r p o r a t i o n s of S r i Lanka i s not s u i t a b l e for t he achievement of the major g o a l s of the n a t i o n a l economy. As a r e s u l t the main i s s u e t h a t c o n f r o n t s the p o l i c y makers i s the problem of c r e a t i n g a s u i t a b l e pay p o l i c y f o r the Public Corporation sector i n S r i Lanka.