This document discusses human resource management practices in public enterprises in Pakistan. It begins by defining human resource management and the public sector. It then compares public and private sector management in terms of ownership, objectives, leadership, and accountability. The document outlines the evolution of New Public Management, which aims to improve public sector efficiency and effectiveness by adopting private sector practices. It discusses principles of NPM like decentralization, competition, and performance standards. The document analyzes HRM reforms in Pakistan's public sector enterprises and the challenges of adopting private sector practices due to political and cultural differences.

1. Human Resource Management in Public
Enterprises of Pakistan
Seminar In HR
Submitted By:
Anam Nasir
MBA 6th
Roll No (054)
Submitted To:
Mam Rabia Shahzadi

2. Human Resource Management
Practices in Public Enterprises of
Pakistan
NEW PUBLIC MANAGEMENT (NPM)

3. Introduction
• Human Resource Management
• The process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and safety,
and fairness concerns.
• Public Sector:
• The public sector is that portion of an economic system that is wholly
and partially controlled by national, state or provincial, and local
governments.
• The main motive of any enterprise working in the public sector is to
serve public.

4. Differences

5. Features
Public Sector
Management
Private Sector
Management
Ownership Government Body Non Government and
Individuals
Objective Profit and social obligation Profit
Management Government Nominee Private person himself
Values/Interest Public serve or whole
nation
Individual or group
Leadership Political processes ensure
that leadership changes
frequently.
Stay in leadership positions
for an indefinite number of
years.
Accountability/Liability Governmenr Owner is liable
Encouragement Results Performance
Difference between Public and Private Sector Management:

6. Evolution of New Public Management:
• Elements of Public Administration/Management:
• People
• Organization
• Public Policy
• Laws and Regulations
• Public Finance
• Public Servants

7. Traditional Model of Public Administration:
• Public administration as both theory and practice began in the late 19th
century.
• The beginning of the traditional model is best seen in mid-
nineteenth century Britain.
• Hierarchical Structure (bureaucracy culture), Delay
inflexibility.
• Equal distribution of work (primarily responsibility of minister
alone)
• Power differentiation (state owned monopolies)
• Centralization
• Specialization (In Particular work)
• Rationality in decision making
• Politics Administration Dichotomy

8. HISTORY OF NEW PUBLIC MANAGEMENT
•NPM viewed as a modern approach of management in public
sector arose in UK in 1970s as the reaction toward the
insufficiencies of traditional public administration approach.
•Critics towards unsatisfied public sector performance.
•Public sector organisations were seen:
• Unproductive
• inefficient
• always suffer loss
• low quality
• poor innovation and creativity
•These conditions triggered the movement to reform public sector
management;
•Then NEW PUBLIC MANAGEMENT emerged.

9. HISTORY OF NPM
• The notion of New Public Management firstly introduced by
Christopher Hood in 1991.
• NPM emphasized;
• Decentralisation,
• Devolusion, and
• Modernized provision of public services
• To use private sector and business approaches in the public
sector.

10. Several Name refer to Modern Public Sector
Management
• Managerialism,
• New Public Management,
• Market-Based Public Administration,
• Post-Bureaucratic Paradigm,
• Entrepreneurial Government

11. The Goal of NPM
Improve efficiency and effectiveness in
public sector organization,
Improve management style
Improve quality of public services
Improve accountability and performance

12. The Essence of NPM
• NPM is public sector management theory that assumed
that private sector management practices are better than
management practices in public sector.
• So, in order to improve its performance, public sector
should adopt practices and management techniques applied
in business sector, for example:
– The adoption of market mechanism,
– Compulsory Competitive Tendering Contract,
– Privatisation of public corporations
“Run Government Like a Business”

13. Adoption of business sector management style
Private sector
management model
Need to be efficient and competitive
Cost Efficiency &
Effectiveness
Competitive
Flexible
Adaptive
Responsive
Customer Focus

14. Principles of NPM
• Management
• Performance Standards
• Output Controls
• Decentralization
• Private sector management
• Competition

15. New Public Management New Public Administration
Hands on approach Hierarchy and rules
Explicit standards Apolitical, non-partisan civil service
Emphasis on output control Internal regulations
Disconnection of units Equality (Equity)
Importance of the private sector Importance of public sector
citizens as customers citizens as clients
Improve timing & Greater usage of
money
Stability

16. HRM in Public Enterprises in
Pakistan:
• HRM plays vital role in public enterprises by enjoying significance
presence of both developed and developing countries.
• In order to be efficient, PE’s adopting best corporate practices, by
introducing private sector human resource management practices in
place of traditional personnel administration.
• They also face challenges and issues regarding intended or formulated
HRM policies which may be different from implemented HRM
practices due to inevitable state controls and political interferences.

17. Public Enterprises sector and NPM
reforms:
• Public enterprise (PE) operates as dual personality being a public agency as well as distinct
business entity.
• For efficient operations they can cope with political pressures and government controls.
• Having separate legal status they can take management decisions independent of government and
enjoy autonomy in many responsibilities of hiring, rewarding, managing performance and firing of
employees.
•
• The basic idea of NPM reformers is to expose public sector to corporate management culture to deal
with its inefficiencies.
•
• For reinvention of PEs, specific mechanisms prescribed by NPM reforms include restructuring of
board of governance, managerial autonomy, performance contract, implanting private sector
management techniques and carry latest skills and technologies.

18. HRM reforms in Public Sector:
• With the realization that human resource plays an important role in achieving
the desired results, public sector reforms are targeting the quality of
government employees.
• Public sector HR reforms include;
• tenured career appointment
• promotion on the basis of seniority
• part of unified civil service.
• HR reforms more focus on performance then result.
• Contractual appointment are replacing life-time job.
• Promotion is linked with performance instead of seniority.
• Break-up of national pay scales are initially introduced in developed countries
and then in developing countries.

19. Continued..,
• Involvement of line managers in HRM.
• HR mangers playing role of journalist.
• Use of performance contracts to maximize employee performance.
• The end of job-for- life mentality.
• Changing trends in HR system management influenced by NPM which
include;
• expansion of employee development possibilities
• emphasis on competitiveness
• Collaboration
• communication and information exchange
• participating management style.

20. Adoptability of HRM Practices in Public Sector:
• Public enterprises in Pakistan are modernizing HR management
practices by international donor agencies.
• But the adoptability of private-sector HRM practices is challenge for
PEs of Pakistan in two respects.
“Context of application of NPM‟
reforms
Application of “content of NPM‟
reforms
which involve inherent
challenge of policy transfer
from developed to developing
countries.
which present challenge of
coping with public-private
differences

21. • For analyzing adoptability of NPM-based reforms in developing
countries,
– New Institutionalism Theory can provide the basic framework for
human resource reforms in public enterprises in Pakistan.
– Institutional Isomorphism can be used to analyze the HR reforms as a
mechanism:
• Coercive isomorphism pressures are caused by both formal and
informal pressures bring on organizations by other organizations
upon which they are dependent.
• Mimetic isomorphism can trigger organizations to introduce change
by imitation due to uncertainty. This behavior happens when an
organization's goals or means of achieving these goals is unclear.
• Normative Isomorphism pressures are norms and formal rules of
institutions will shape the actions of those acting within them

22. Isomorphic Pressures and Contributing Factors
Isomorphic Pressure Contributing Factors
Coercive
Formal and informal
pressures such as government
regulations or local culture
• Government requirements.
• Influence from trading partner.
i.e. Mergers, Acquisition etc.
• Need to mirror other
organizations in order to interact
easily.
• Cultural influences.

23. Mimetic
Arising from uncertainty –
firms will imitate other
firms that appear successful
or legitimate
•Use of consultants.
•Outsourcing.
•Employee Transfer.
•Wide or demanding
customer base.

24. Normative
Arising from
professionalization,
particularly of functional
fields
• Professional networks and
trade associations.
• Formal educational
programmes and training.
• Commonality of job titles.
• Centralization

25. • Two perspectives in HR debate can provide essential
guidance in this matter:
• Although HR perspective can be differ or vary on different
countries:
• Universalistic Perspectives
• Contingency Perspectives

26. HRM Practices In Public Enterprises
(Formulated and Operationalized)
• Gap analysis of formulated and operationalized HR
Practices:
• HR Practices
• Recruitment
• Training and Development
• Performance Evaluation
• Compensation
• Promotion

27. Conclusion:
• HRM practices are introduced under NPM-based HR reforms which involve a
challenge of policy transfer from advanced countries.
• Formulated and operationalized HR practices are separate.
• Universalistic perspective support the implementation of internationally
accepted best practices with the assumption that these are successful in any
organization.
• In Public enterprises, political environment, government interference and
union pressures can be major reasons that hinder the application of corporate
management practices.
• Therefore, contingency perspective seems to be relevant in the context of
public enterprises.
– Thus best fit rather than best practices approach seems to be appropriate
for the application of private sector HRM practices in the unique setting
of public enterprises.

28. Continued..,
• For analyzing the mechanism that induces public enterprises to adopt
HRM practices, the mimetic perspective of institutional isomorphism
appears to be more appropriate.
• This seems to true in case of public enterprises introducing business
like internationally recognized HRM practices in order to look modern
or professional.