Hrm report

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Impact of HRM Practices on Employee
performance in Public Sector Organizations
in Pakistan
HRM Final Reprt
Instructure: Nyla Aleem Ansari
Group Member:
Azamat illahi
Bhagwan Das
Bila Chinoye
Junaid Ahmed
Muhammad Arham
Noman Maqsood

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Table of Contents
ACKNOWLEDGEMENT.........................................................................................................................3
Executive Summary ............................................................................................................................4
INTRODUCTION TO THE COMPANY......................................................................................................5
INDUSTRY OVERVIEW:........................................................................................................................6
LIMITATION........................................................................................................................................7
HR SYSTEM.........................................................................................................................................8
DESCRIPTION OF THE TOPICS............................................................................................................10
What Is Motivation? .....................................................................................................................10
Maslow’s Hierarchy of Needs Theory..........................................................................................10
McGregor’s TheoryX and Theory Y.............................................................................................11
Herzberg’s Two-Factor Theory(motivation hygiene theory).........................................................11
Three-Need Theory ...................................................................................................................12
Goal-setting theory....................................................................................................................13
Reinforcement Theory...............................................................................................................14
Expectancy Theory ....................................................................................................................14
Compensation..............................................................................................................................17
Compensationfor Employees:....................................................................................................17
Public vs Private Institution Compensation .................................................................................18
Compensation strategies & Employee motivation .......................................................................20
ANALYSIS.........................................................................................................................................21
OBSERVATION AND RECOMMENDATION...........................................................................................22
CONSLUSION....................................................................................................................................29
REFRENCES.......................................................................................................................................30
References.......................................................................................................................................30

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ACKNOWLEDGEMENT
It is great privileged for our group member to accomplish the study on the time. The
report could not have been completed without the support of many people who are
gratefully acknowledged herein.
First of all, we would like to thank you to Allah Almighty for the timely completion for
our report.
We are very much thankful to Human Resources Department of Karachi University in
Karachi Business School and Administration, Faculty and Staff of Karachi university
assisting and allowing us to conduct our research by giving their valuable response.
We are very much thankful to our Teacher Miss Nyla Ansari for consistently
supporting our research and guiding and answering all our queries.
Finally, we are very thankful to our parents, and Friends, for constant prayers and
we dedicate this Final project report to them.
Thank you
Group Member
Azmat Illahi
Bhagwan das
Bilal Chinoy
Junaid Ahmed
Muhammad Arham
Noman Maqsood

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ExecutiveSummary
The plan of this case study is to analyze the effectiveness of compensation and
motivation and can lead to positive and better performance in an organization. The
study defines the HR practices observed at Karachi university and how they keep
their employees’ motivation level maintained through compensation packages and
benefits. The data from our interviews and survey provide a lot of similarities as well
as differences from our literature reviews. The basic motivational techniques through
compensation incentive for upper and lower level employees and theories are similar
in literature as well as in the practical world. But the gaps and disparities from the
practical world are the main concentration of this case study. The case study
discusses how good compensation package can encourage individual motivation level
and boast the performance level.
Compensation and motivation pretty much go hand in hand in business management.
Motivation is a crucial part of any field whether it is business, sports or even the
armed services. On the other hand, compensation is a tool used to inspire and
motivate an individual. It revolves around a common principle of getting more than
the current market standard and giving extra performance on top of what’s expected
of you. It is seen that an individual cannot perform optimally without proper
motivation even if the circumstances are favorable. The gaps were mostly regarding
the fact that most of the study and research taken place in education system for
teachers, administrators and departmental staff and has ignore the contribution and
importance of lower level workers. Therefore, the study does not only focus on the
major influencer of education institution but it also equally emphasizes on the lower
level worker’s contribution and their motivation level with compensation,
recognition, and appreciation. So in a nutshell the research gave us a broader view on
how practicalities are different from the literature review and how accurate they are
for real life managers.

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INTRODUCTION TO THE COMPANY
Spread over 1200 acres of land, University of Karachi was established through the
parliament as a Federal University in 1951. Sindh.In the year 1953, it started its
teaching and research activities at two Faculties of Arts and Science. Opened with an
initial intake of 50 students, the university is now a sprawling structure of 53
Departments and 20 world class and highly reputable Research Centers and
Institutes, under eight faculties of Arts, Science, Islamic Studies, Pharmacy,
Management and Administrative Sciences, Law, Education and Medicine. At present,
the enrolment of regular students at the Campus is slightly over 24,000. There are
over 800 teachers and more than 2500 supporting staff. A plot of 1279 acres of land
was acquired on the Country Club Road (now University Road) and on 18th January
1960 the university was shifted to the new campus.
Karachi University today
The Karachi University today is the biggest university in the country. It comprises
eight faculties with which all the colleges of the city are affiliated. B.S., M.S., M.Phil.
and Ph.D. classes under five of these faculties Arts, Science, Pharmacy, Management
and Administrative Science and Islamic Learning are conducted on the campus, while
under the Faculties of Medicine, law and Education it examines the students admitted
to their affiliated colleges. Research programmers leading to M.Phil and Ph.D Degree
are offered under all the faculties.
New Era of Development
The University has now embraced upon a gigantic process of multifaceted progress
with emphasis on capacity building and quality enchantment. Many departments in
faculties of science and Arts where strengthened by modernizing facilities recently to
enhance their quality & productivity.
These include Departments of Physics, Chemistry, Statistics Food Science and
Technology, Biotechnology, Computer Science and Mass Communications. For
common facilities for science invarious scientific disciplines a centralized science lab

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has been established. It has further enhanced the capabilities for scientific research.
Some noteworthy developments which serve as land marks in the university include
a highly sophisticated and well equipped Herbarium for research in plant science.
Already completed Botanical Garden is first of its kind in the country. The Garden
adds plenty of beauty to the campus on the one hand while on the other it serves as
an open lab for the Plant scientists.
Construction of hostels for the visiting faculty and research scholars and additional
facilities for M.Phil/Ph.D scholars, have further enhanced chances for quality and
speedy research. Several new development projects are on the anvil while many
others are at various stages of completion. The University is now moving fast on the
path of developments playing its due role in the national development.
INDUSTRY OVERVIEW:
The education system of Pakistan is comprised of 260,903 institutions and is
facilitating 41,018,384 students with the help of 1,535,461 teachers. The system
includes 180,846 public institutions and 80,057 private institutions. Hence 31%
educational institutes are run by private sector while 69% are public institutes.
Government of Pakistan continually increasing the budget of Education. The incentive
is to enhance overall personality development of human beings. Education is the back
bone of every nation. Quaid-i-Azam, the founder of Pakistan, stated that “No nation
can flourish without education.” Education is plays a key role to change the attitude
and behavior of the individual. In the process of education, people learn how they can
better survive in the fast progressing world. The Higher Education Commission (HEC)
is working effectively through advancement of modern education methods, creative
syllabus, training and development of instructors.
In order to maintain the performance and activities in education sectors; The higher
education need to implement the Human Resources Management. The Pakistani
workforce shows heterogeneous outlook with urban and rural population divide,
regional disparities, and difference in level of education. In this background, more
comparative research studies are needed to address gaps in the diverging workforce.
The objective of tracking HR practices and their effect on employee performance was

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to examine that right person may get right amount of reward, and how performance
appraisal and compensation system affect employee‘s commitment to perform.
Inadequately designed or badly managed appraisal systems will remain unsuccessful
in assessing the right attitude to attain right performance.
Pakistan has expressed its commitment to promote education and literacy in the
country by education policies at domestic level and getting involved into
international commitments on education. In this regard national education policies
are the visions which suggest strategies to increase literacy rate, capacity building,
and enhance facilities in the schools and educational institutes
LIMITATION
The study is only focus on one public organization i.e Karachi university
located in Karachi, Gulshan-e-Iqbal, Sindh Pakistan.
The study does not cover all the variable of training and compensation due to
unavailability of information and privacy of an organization.
The study conducted on 10 faculty members from five departments, General
staff members in Administration block and Departments specifically clerks.
Apart from limitation, this research may provide insight the administration of
an university to improve overall performance of employees.
All the information related to the report is confidential and can not disclosed
to others. Some employees were uncomfortable and hesitant to share those
and showed negative impression.

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HR SYSTEM
Representative inspiration is a key figure worker execution which indicates execution
of the entire firm. That is the reason today firms are putting extraordinary
accentuation to look for individuals who are roused. In a firm the HRM office plays
out the assignment of dealing with the most imperative resources - the general
population working there.
The employees mostly motivated through the incentives given by the government
such as; residence and through pension plans. So one of the main attractions for
employees is that there future is secured. The employees are motivated by their grade
scale, which changes with the time period and the seniority level. The declining of
performance due to politics within the relations of employees make it a difficult job
for the Human Resource department to ensure an efficient outcome.
The only way to look for employees work through attendance and the authencity can
not be verify , The system which regulate the employees presence are outdated and
mostly on paper work so there is no transparency insystem . The whole system must
be change to maximize the the performance of HR and which also help to find the loop
holes for that we need to use the competency model.
Human capital is the key factor for economic success of any organization. Actually we
live in the era of globalized economy that brings strong similarities, in time of huge
explosion of information, changes and innovations. HR managers think about how to
find any competitive advantage enabling their companies to differ from others and
how to define, find and maintain those competencies that enable humans to cope with
change. Private sector found an answer for these issues in Competency based
management. Competency models are a key tool in human resource systems and
practice. Public administrations systems throughout the world have been subjected
to major reforms over the last 30 years and Competency management has already
been implemented in public sector of several OECD countries as well. Concept of
Holistic managerial competence and the necessity of holistic managerial competence
valuation in public sector.

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So
suggesting the model for improvement this model is also used in many private sector
and also in public sector which include the appraisal performance and removing the
loop holes in organization (Google, n.d.).

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DESCRIPTION OF THETOPICS
WhatIsMotivation?
It is the result of an interaction between the person and a situation; it is not a personal
trait. It Is the process by which a person’s efforts are energized, directed, and
sustained towards attaining a goal?
Energy: a measure of intensity or drive.
Direction: toward organizational goals
Persistence: exerting effort to achieve goals.
Motivation is the important for an organization and employee’s motivation towards
work leads to better performance. (robbins)
Early Theories of Motivation
Maslow’sHierarchyof NeedsTheory
Needs were categorized as five levels of lower- to higher-order needs
1. Physiological needs: A person’s needs for food, drink, shelter, sex, and other
physical requirements.
2. Safety needs: A person’s needs for security and protection from physical and
emotional harm, as well as assurance that physical needs will continue to be
met.
3. Social needs: A person’s needs for affection, belongingness, acceptance, and
friendship.
4. Esteem needs: A person’s needs for internal esteem factors such as self-
respect, autonomy, and achievement and external esteem factors such as
status, recognition, and attention.
5. Self-actualization needs: A person’s needs for growth, achieving one’s
potential, and self-fulfillment; the drive to become what one is capable of
becoming.

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McGregor’sTheoryX and TheoryY
Theory X
Assumes that workers have little ambition, dislike work, avoid responsibility,
and require close supervision.
Theory Y
Assumes that workers can exercise self-direction, desire responsibility, and
like to work.
Assumption:
Motivation is maximized by participative decision making, interesting jobs, and
good group relations.
Herzberg’sTwo-Factor Theory(motivation hygienetheory)
Job satisfaction and job dissatisfaction are created by distinct factors.
Hygiene factors: extrinsic (environmental) factors that create job
dissatisfaction.
Motivators: intrinsic (psychological) factors that create job satisfaction.

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Attempted to explain why job satisfaction does not result in increased performance.
The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.
Three-Need Theory
There are three major acquired needs that are major motives in work.
Need for achievement (nAch)
The drive to excel and succeed
Need for power (nPow)
The need to influence the behavior of others
Need of affiliation (nAff)
The desire for interpersonal relationships

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Contemporary Theories of Motivation
Goal-setting theory
Goal-setting theory, which says that specific goals increase performance and that
difficult goals, when accepted, result in higher performance than do easy goals.
The willingness to work towards attainment of goal is main source of job motivation.
Clear, particular and difficult goals are greater motivating factors than easy, general
and vague goals.
Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
Goals should be realistic and challenging. This gives an individual a feeling of pride
and triumph when he attains them, and sets him up for attainment of next goal. The
more challenging the goal, the greater is the reward generally and the more is the
passion for achieving it

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ReinforcementTheory
Reinforcement theory says that behavior is a function of its consequences. Those
consequences that immediately follow a behavior and increase the probability that
the behavior will be repeated are called reinforcers.
Positive reinforcement is preferred for its long-term effects on performance.
Ignoring undesired behavior is better than punishment which may create
additional dysfunctional behaviors.
EquityTheory
“Proposes that employees compare what they get from a job (outcomes) in relation
to what they put into it (inputs), and then they compare their inputs–outcomes ratio
with the inputs–outcomes ratios of relevant others.”
ExpectancyTheory
“States that an individual tends to act in a certain way based on the expectation that
the act will be followed by a given outcome and on the attractiveness of that outcome
to the individual.”

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Current Issues in Motivation
Managing Cross-Cultural Motivational Challenges
Motivating Unique Groups of Workers
Diversity of Employees.
MOTIVATING PROFESSIONALS:
Motivating Contingent Workers
Motivating low scale worker
Compensation Distribution
Employees Recognition and appreciation
The Important of the Relationship on Motivation and Performance in the
Work of public sector.
Motivation and performance two concepts are closely related to each other. Many
people believe that people who are more motivated in the workplace show a good
performance motivated individuals are very fond of their work but this must be
carefully managed so that they waste energy not be level higher because their work
can often be counterproductive. Being motivated to work you need to know how to
spend energies and skills to work as it directly affects the performance of the work.
Teachers motivated, qualified are critical case to increasing productivity and quality
of the process of education whose result is performance that they exhibit in their
work with students, collaboration with colleagues and innovations they bring to the
educational process. Satisfaction at work is one of the main needs that appeared
visibly filling and fulfilling the needs of teachers at work which gives end and outcome
of the work of teachers in relation to students and pupils. So in a working
environment in case the academic institution exists a close relationship between
motivation, satisfaction and performance. Motivation is what teachers need to
perform better in their work. When a teacher felt motivated in the workplace, it is
satisfied that visibly shows that in this academic environment their basic needs are

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met and that makes them perform much better and makes teachers to take
responsibility for reductions and promotions that can display students during the
academic year, makes them feel valued and this encourages a high level of
productivity. It is very important that administrators, school leaders to develop
methods that allow understanding of option rather motivational and not appearing
to teachers. (Kotherja, May 2015)

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Compensation
Compensation is the systematic way to provide monetary value to employees in
exchange of performance in organization. Compensation may achieve several
purposes assisting in recruitment, job performance, and job satisfaction.
Compensation is a tool used by management for a variety of purposes to further the
existence of the company. (Desller)
recruit and retain qualified employees.
increase or maintain morale/satisfaction.
reward and encourage peak performance.
achieve internal and external equity.
reduce turnover and encourage company loyalty.
modify (through negotiations) practices of unions
Compensation is the most important part in any organization as it is one of the key
factors of motivation for all employees now-a-days. Therefore, different organization
undertakes attractive compensation policy to uphold the potential employees to
increase the productivity. Generally, we can see two types of compensation system.
Financial Compensation
Non- Financial Compensation
Compensation for Employees:
Compensation is the most important part for an employee as well as the organization
because it is one most important tool that motivates the employees to perform for the
company. Actually compensation refers to a particular remuneration that employees
are paid based on the job they have done. In fact what the employees are paid due to
their employment and job done is called compensation. Compensation refers other
forms of remuneration as well that could be either monetary or non- monetary.
Compensation refers to all forms of pay going to employees and arising from their
employment (Dessler, 2012). Moreover we can say that compensation is sort of
rewards that can be fundamental as well as more than the basic that employee
receives in terms of their service to the company or organization where all sort of
incentives may be monetary or non-monetary are offered as a reward to the
employees. Compensation represents both the intrinsic and extrinsic rewards
employees receive for performing their jobs (Guirgis, 2007)

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The main purpose of compensation is to retain and uphold as well as attract the
potential employees to set a standard of compensation. Compensation needs to be
lucrative such ways that without an intensive compensation package it is impossible
to hire best expertise for the accomplishment of the job.
The level of compensation differs based on some criteria’s for which employees of
same level consumes different types of compensation. First of all, due to education
and experience the salary and other compensation benefits differ person to person. It
means the more educated and experienced employee enjoy better compensation
benefits comparing with the less educated and experienced employees of the same
post with the similar job description and status. Secondly, it is the skills that have a
huge effect on the compensation. The more skilled staffs enjoy a better compensation
package comparing to others of the similar job recognition. Lastly in accordance with
the time with the employer the employees get additional benefits that other
personnel may not have.
Public vs Private Institution Compensation
To compare with all the public learning institutes, private institute pays relatively
high to their lower level employees. It is done due to grab the potential employees
from the market. Actually there are few private institutes in the market who pay such
a high basics to their employees for which private companies are the first choice of
new comers. This is the area in which private institutes has done marvelous job
because now-a-days employees are more concern of their basics. Private institute has
successfully adapted this change. It has been seen that employees from private
institutes are highly satisfied due to the convenient salary structure as public
institutes in the market are not paying like this. Moreover, mostly private institutes
used to review its salary once in a year. For a instance every December, the salary of
the employee review based on the performance which is key motivating factor to
perform well. Another thing that is to mention that private institution conducts
performance evaluation twice ina year according to that they are to review the salary.
Public institutes:
Public institutes have their own benefits. In Karachi University, employees are given
non-monetary rewards for instance their health care and children education are
given free. Moreover, there are also after retirements benefits. Monthly pensions are
provided. While working in a public institute each employee is granted through a
rank. This rank is accepted throughout the country.
After conducting a primary research the following table shows the basic salary
methods followed in Karachi University:

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Professional A - Medical, Dental & Law
Professional B - Business administration, Commerce, Computer Science,
public administration & Media science.
Basic salary for undergraduate program:
Professional A Rs.60,000 (Degree program for a max of
30 seats)
Professional B Rs.50,000 (Degree program for a max of
30 seats)
Increase of number of seats:
Professional A Rs.2,000 (per seat)
Professional B Rs.2,000 (per seat)
Resource taken from http://www.uok.edu.pk/ac/fee.php.
Private Institutes:
On the other hand private institutes more concentrate on the higher monetary
benefits. This attracts the high achiever employers in the organization. The most
important aspect of a private institute is that salaries of employees are given on time.
While researching for Karachi university salary structure, we came to know about
employees who are not paid their basic salary for the period of three months.
Faculties from foreign universities are more attracted to private institutes majorly
because of salary structure. This creates the lack of skilled faculties in public
institutes. According to a secondary research following are the basic salary structure
in a private institution:
Professional A - Medical, Dental & Law.
Professional B - Business administration, Commerce, Computer Science,
public administration & Media science.
Basic salary for undergraduate program:
Professional A Rs.125,000/- (Degree program for a max
of 30 seats)
Professional B Rs.90,000/- (Degree program for a max
of 30 seats)
Increase in number of seats:
Professional A Rs.25,000/-(per seat)
Professional B Rs.15,000/-(per seat)

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Compensation strategies & Employee motivation
It is common knowledge that employers use different compensation strategies to
motivate their employees. Most often individuals are provided with base pay to
engage with the company and ensure their continued participation. In many cases,
base salary alone will only spur an employee to work at the level required for them
to keep their job. If employers want staff members to perform at a superior level, they
likelyhave tooffer employees the opportunity to earn incentive (i.e.—additional) pay.
Incentive plans are one such way to motivate employees to expend more effort, but
they are usually not very flexible. Most incentive plans involve a pay-for-performance
arrangement in which employees are rewarded for the achievement of specific
objectives. These types of compensation strategies tend to be of medium-range
duration, and include performance criteria that feature broad operational or financial
metrics. Limitations include the fact that many important performance “events” occur
over an irregular timeframe rather than a standard cycle; employees’ impact on plan
criteria may be narrow or subject to uncontrollable factors; and the fact that
employees may not see the trade-off of their extra effort for a set level of payout to be
attractive enough to motivate them. For these reasons, employers should consider
other compensation strategies to engage and reward their top performers.

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ANALYSIS
After conducting survey and interview with faculty members and others staff, We
have calculated percentage of the result for every monetary incentive and motivation
level of employees in Karachi University. We have made questionnaire of 7 questions
related to the compensation and motivation factor and their impact on performance.
The respondents were asked to choose any number from 1-5. The number 1 scaled as
Highly dissatisfied whereas number 5 as highly satisfied and 3 option including (Yes,
No, Neutral)
We have go through the administration block, Human resources department at
Karachi university, Finance Department, Public Administration department and Arts
department in which we have asked the survey question and conduct a personal
interview with faculty members and staff specially clerks. Here are the following
response and data analysis and recommendation for improvement.

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OBSERVATION AND RECOMMENDATION.
01. Are you satisfied with your current salaries?
Particular Responds Percentage
Strongly satisfied 2 13
Satisfied 4 27
Neutral 0 0
Dissatisfied 6 40
Strongly Dissatisfied 3 20
Total 15 100%
Observation
The employee’s motivation has positive correlation with good compensation
packages. The 20 % were strongly dissatisfied whereas 40% were dissatisfied the
responses were answered from lower level worker such as clerks, peon and lecturer.
Possible Recommendation
Employees need to be considered as the biggest assets. Government of Pakistan need
to look after this issue for lower level employees such as clerks, peon. The salaries
Strongly satisfied
13%
Satisfied
27%
Neutral
0%
Dissatisfied
40%
Strongly
dissatisfied
20%
RESPONSE (%)

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should be increased at reasonable level where they can meet the daily expensed of
livelihood and face the sky-rocketing inflation.
02. Are you satisfied with the compensation benefits and plans provided
to you?
Satisfied 2 13.5
Neutral 2 13.5
Dissatisfied 4 27
Total 15 100%
Observation:
Compensation benefits include medical, shelter, insurance, dental, disability benefits,
holidays pay, and bonuses. It is observed during survey that Professor, old staff are
bestowed with only shelter facility whereas 80 % of employees bear their expenses
on their own.
Recommendation
It is obvious that Government of Pakistan cannot provide all the compensation
benefits to employees, However, University management should have equally
emphasized the needs of lower level worker as well. They are the stakeholder of an
organization and their contribution matters. Karachi university need to divide the
Strongly Satisfied
0%
Satisfied
13%
Neutral
14%
Dissatified
27%
Strongly
Dissatified
46%
RESPONSE()

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compensation advantages in their employees and provide relative compensation
advantage according to seniority, job performance and salary package.
03. How do you rate your company’s incentives system?
Excellent 0 0
Very Good 0 0
Good 0 0
Average 3 20
Poor 12 80
Total 15 100%
Observation.
An incentive program is a formal scheme used to promote or encourage specific
actions or behavior by a specific group of people during a defined period. Incentive
programs are particularly used in business management to motivate employees and
in sales to attract and retain customers. The data revealed that about 80 percent
employees rated as poor. The respondents include professor, lectures, staff and lower
level worker.
Recommendation
Incentive program are very necessary for an organization to boast the employee’s
certain behavior and motivation level. Incentive program are mostly done in private
organization to retain the employees, encourage, motivate them. As in the UNDP
Report (Wignaraja, 2006) observes “organizations must continually seek ways to
keep their employees and work groups engaged in their work, motivated, efficient
and productive Possible recommendation for Karachi university Administration that
Excellent
0%
Very Good
0%
Good
0% Average
20%
Poor
80%
RESPONSE (%)

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they need to consider the importance of modern model of motivation of employees
and work on it to boast the performance with motivated people.
04. Does University pay the salary on a time?
Yes 6 40
No 7 46
Neutral 2 14
Total 15 100%
Observation
According to the data analysis, it is concluded that 46 percent said they don’t get the
salary on time; the respondents were from lower and upper level as well.
The university management need to recognize the importance of salary for
employees specifically for lower level worker whose family livelihood is depend on
their salary. According to one article that employees who get salary on time are more
motivated towards their works and perform better (jason, n.d.).
YES
40%
NO
45%
Neutral
14%
1%
Respnse (%)
YES NO Neutral

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05. How would you rate the retirement benefit incentive for employees?
Satisfied 5 33
Neutral 0 0
Dissatisfied 6 40
Total 15 100%
Observation
University employees revealed that Government does not provide the sufficient
pensions once retired from an organization. The 66% employees felt insecure after
their retirement and they stated that it would be difficult for their family to survive.
The 33% of respondent who had good compensation and good financial stability.
Recommendation
0%
33%
0%
40%
27%
RESPONSE(%)
Strongly satisfied Satisfied Neutral Dissatisfied Strongly dissatisfied

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Upgrading the retirement plan and provide the good benefits so that existing
employees fell secure their future and work effectively. The employees with lesser
employees should also be incorporated in the scheme since it would help make them
permanent employees and would help them in retaining too.
06. Howwouldyou see that Goodcompensationleads to highmotivation?
Very High 2 14
High 5 33
Neutral 0 0
Low 3 20
Very low 5 33
Total 15 100%
Observation
From observation, we concluded that good compensation is mostly important for
lower level whereas employees with good position said they believe in recognition,
job enrichment, rewards, environments, students betterment, and Good education
system in Pakistan. About 56 percent respondents were on advantageous position
and mostly they were professor, and department head.
Very High
14%
High
33%
Neutral
0%
Low
20%
Very low
33%
RESPONSE (%)

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University need to understand the diverse needs of employees and manage to sort
out their issues that hinder them in performing well. Management need to recognize
what kind of factor can motivate or demotivate the employees’ future performance.
07. How do you see the private company compensation benefits?
Very High 3 20
High 8 54
Neutral 0 0
Low 4 26
Very low 0 0
Total 15 100%
Observation
The employees of public sector claim that private organization offer good package
and other benefits. The private organization caring environment where they
appreciated and encouraged. About 80 percent employees confirmed that private
organization good compensation package to their employees compare to public
sector. One of the employees gave an example of IBA Karachi and their package to
their employees specially faculty members. Professor form department that most of
the faculty members are doing extra job in other university as a visiting faculty and
earn extra amount.
Very High
20%
High
54%
Neutral
0%
Low
26%
Very Low
0%
RESPONSE(%)
Very High High Neutral Low Very Low

HRM FINAL REPORT
29 | P a g e
The Government of Pakistan need to upgrade the compensation package for
employees and implement a good strategic and HRM plan to motivate employees in
public organization.
CONSLUSION
As a conclusion, we can emphasize the importance each employees that can
contribute in an organization and enhance the performance level . The performance
of each employees, either lower or upper, is very important in the development of
new generation and educational process. Motivation to learn is something personal
to everyone individual but significantly affected by external factors is therefore
important to emphasize the importance that the new generation educators in their
work performance.
From above observation and data analysis, the performance of Karachi university is
highly depended on the good compensation package of employees. According to the
responses, the employees with good compensation package are more likely to work
effectively in organization because more and less, money is the ultimate goal of an
employees to work in one organization.
The university management may have lacking in recognizing the efforts of all the
stakeholders and importance of all worker whether it is lower level worker or higher
level. The contribution of each employees should be recognized, and appreciated so
that their motivation level remains at higher level. The research found that there is a
big gap between the lower level employees including clerks, Guards, and peon, and
upper level employees such as professor, lecturer, and departmental employees.
Comparing the advantage of both employees, the lower level employees have lesser

HRM FINAL REPORT
30 | P a g e
advantage of current salary packages, compensation benefits and work recognition
and appreciation.
REFRENCES
References
Desller.(n.d.). Human Resources Mangement.
Glueck,I.a. (1989). Compesation and Motivation.
Google.(n.d.).RetrievedfromSciencedirect.om :
http://www.sciencedirect.com/science/artilce/S187704816311302
Holt,J. (1993). Compesation leadsto Performace.
jason,A.(n.d.). Google.RetrievedfromEmirated24/7:
http://www.emirates247.com/news/emirates/what-to-do-when-you-do-not-get-your-salary-on-
time-2014-06-15-1.552879
Kotherja,M.(May 2015). The Importanceof Motivation in Employees'Performancein Schools. Itlay:
Journal of Educational andSocial Research.
robbins,S.p. (n.d.). Motivatingemployyes.
Wignaraja.(2006). UNDPREPORT .

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