INTEGRATING LEAN PROCESS IMPROVEMENT INTO EMPLOYEE PERFORMANCE MANAGEMENT: EVIDENCE FROM SRI LANKA’S APPAREL INDUSTRY

Abstract

Sri Lanka's apparel industry is acknowledged as a key contributor to the Sri Lankan economy in terms of national GDP and providing employment. However, the sector continues to face operational challenges in relation to employee performance management (EPM), considering many areas like inconsistent evaluation criteria and having limited feedback mechanisms in PE processes. Thus, by conducting this study, the authors have attempted to address the underexplored potential of integrating Lean process improvement with a special focus on employing Value Stream Mapping (VSM) into EPM systems to enhance productivity and engagement of the apparel employees. The whole study was guided by three objectives, including exploring existing EPM processes, assessing the applicability of Lean/VSM, and providing practical recommendations considering the use of process improvement using VSM within PE processes. This study was conducted as a qualitative single-case study based on a medium-sized apparel firm in Bibila. The required data were collected through 12 semi-structured interviews with management and operational staff, complemented by document analysis of HR policies, appraisal forms, and training records. Thematic analysis and review of documents were used as the analysis tools. The thematic analysis results revealed five key weaknesses: lack of standardisation, narrow feedback channels, training gaps, process inefficiencies, and communication barriers in the existing employee performance management process. Findings indicate that VSM could streamline appraisal processes, reduce delays, standardise evaluation, and link performance outcomes to targeted training. The given recommendations through the study were included: baseline VSM mapping, phased implementation, digital feedback systems, and fostering a continuous improvement culture. These insights offer a replicable framework for Lean-based EPM adoption in labour-intensive sectors of developing economies.