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Importance of Human Resource
Management (HRM)
by: Dr. H.R. Sheikh, Professor
Emiritus, Textile Institute of Pakistan.
The management of all industrial
enterprises endeavour to utilize resources
comprising of raw-materials, man-
power, machinery, adopt modern
manufacturing techniques, manage all
activities efficiently to achieve optimum
results, market the products at
competitive prices and ensure a fair
margin of return on the investment.
Thus, they ensure success of their
companies and survival in business.
Man-power is an important resource and
needs to be managed scientifically and
efficiently.
Dr. Farooq-E-Azam Cheema, chief
consultant of ‘Strategic HR Promotion,
Karachi’ Visited Textile Institute of
Pakistan on 12th August, 2009, delivered
an interesting and informative lecture on
Human Resource Management (HRM)
which is briefly reported as follows:-
1. Status of HRM in Pakistan
Uptil the year 2000 traditional and
conventional approach formed the basis
of HRM in Pakistan as reported below:-
a. Clarks of works approach
The clerks of works approach was
mainly concerned with routine personal
file keeping, dealings with Trade Unions
and maintenance of Industrial Relations.
b. Personnel management approach
The Personnel Management Approach
was mainly concerned with negotiations
between Employer and Trade Unions.
2. HR policy and procedure manual
After the year 2000 the HRM approach
has changed significantly. It is now
based on, “Maintenance of HR Policy
and Procedure Manual.” Main concerns
of this approach are listed below:
    Job descriptions.
    Person specification.
    Demand for work force.
    HR planning.
The aforesaid approach is illustrated
as a chart given as under:
3. HRM inadequately practiced
Dr. Cheema discusseed the causes of
inadequately practiced HRM in our local
environments in general as follows:-
    Lack of commitment to HRM among
     owners and senior managements.
    Top managements do not believe that
     HRM System is really required for
     the purposes it claims to achieve, i.e.,
     attracting quality employees,
     developing them for future and
     retaining them with the organisation.
    HRM system is not required because
     our’s is Employer’s Market.
    Almost all HRM functions wield a lot
     of power within them.
    Formulating the binding policies
     means ceding the vital powers to
     HRM professionals which is not
acceptable to the top managements
     especially the owners and managers.
Some of the other reasons are listed
below:
    Pakistani employer prefers to deal
     with employees on one to one basis.
    In the short run HRM practices incur
     cost without any tangible monetary
     return. This is usually unacceptable to
     Employers seeking quick return on
     investment.
    HRM is a staff function with only an
     indirect role in productivity and this
     compromises its first hand
     imperativeness.
    Non – abidance of Labour Laws.
    Lack of expertise and proven
     knowledge on the part of HRM
     practitioner.
   In general HRM practitioners are
     unable to convince the Employers
     regarding long term benefits of the
     formal HRM practices for the
     business
    They are unable to prepare and
     implement a credible HRM System
     within their organisations. The end
     result is that HRM functions are
     assigned to the Line Managers, are
     practiced informally and lose their
     identity.
At the end of the Lecture Dr. Cheema
answered questions raised by some of the
faculty members of the TIP. Mr. Umair
Saeed, Academic Coordinator of TIP
thanked Dr. Cheema for sparing his time
and delivering an interesting lecture on
HRM Systems.
Importance of human resource management

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Importance of human resource management

  • 1. Importance of Human Resource Management (HRM) by: Dr. H.R. Sheikh, Professor Emiritus, Textile Institute of Pakistan. The management of all industrial enterprises endeavour to utilize resources comprising of raw-materials, man- power, machinery, adopt modern manufacturing techniques, manage all activities efficiently to achieve optimum results, market the products at competitive prices and ensure a fair margin of return on the investment. Thus, they ensure success of their companies and survival in business. Man-power is an important resource and needs to be managed scientifically and efficiently. Dr. Farooq-E-Azam Cheema, chief consultant of ‘Strategic HR Promotion,
  • 2. Karachi’ Visited Textile Institute of Pakistan on 12th August, 2009, delivered an interesting and informative lecture on Human Resource Management (HRM) which is briefly reported as follows:- 1. Status of HRM in Pakistan Uptil the year 2000 traditional and conventional approach formed the basis of HRM in Pakistan as reported below:- a. Clarks of works approach The clerks of works approach was mainly concerned with routine personal file keeping, dealings with Trade Unions and maintenance of Industrial Relations. b. Personnel management approach The Personnel Management Approach was mainly concerned with negotiations between Employer and Trade Unions.
  • 3. 2. HR policy and procedure manual After the year 2000 the HRM approach has changed significantly. It is now based on, “Maintenance of HR Policy and Procedure Manual.” Main concerns of this approach are listed below:  Job descriptions.  Person specification.  Demand for work force.  HR planning. The aforesaid approach is illustrated as a chart given as under:
  • 4. 3. HRM inadequately practiced Dr. Cheema discusseed the causes of inadequately practiced HRM in our local environments in general as follows:-  Lack of commitment to HRM among owners and senior managements.  Top managements do not believe that HRM System is really required for the purposes it claims to achieve, i.e., attracting quality employees, developing them for future and retaining them with the organisation.  HRM system is not required because our’s is Employer’s Market.  Almost all HRM functions wield a lot of power within them.  Formulating the binding policies means ceding the vital powers to HRM professionals which is not
  • 5. acceptable to the top managements especially the owners and managers. Some of the other reasons are listed below:  Pakistani employer prefers to deal with employees on one to one basis.  In the short run HRM practices incur cost without any tangible monetary return. This is usually unacceptable to Employers seeking quick return on investment.  HRM is a staff function with only an indirect role in productivity and this compromises its first hand imperativeness.  Non – abidance of Labour Laws.  Lack of expertise and proven knowledge on the part of HRM practitioner.
  • 6. In general HRM practitioners are unable to convince the Employers regarding long term benefits of the formal HRM practices for the business  They are unable to prepare and implement a credible HRM System within their organisations. The end result is that HRM functions are assigned to the Line Managers, are practiced informally and lose their identity. At the end of the Lecture Dr. Cheema answered questions raised by some of the faculty members of the TIP. Mr. Umair Saeed, Academic Coordinator of TIP thanked Dr. Cheema for sparing his time and delivering an interesting lecture on HRM Systems.