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Importance of human resource management


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Importance of human resource management

  1. 1. Importance of Human ResourceManagement (HRM)by: Dr. H.R. Sheikh, ProfessorEmeritus, Textile Institute of Pakistan.The management of all industrialenterprises Endeavour to utilizeresources comprising of raw-materials,man-power, machinery, adopt modernmanufacturing techniques, manage allactivities efficiently to achieve optimumresults, market the products atcompetitive prices and ensure a fairmargin of return on the investment.Thus, they ensure success of theircompanies and survival in business.Man-power is an important resource andneeds to be managed scientifically andefficiently.Dr. Farooq-E-Azam Cheema, chiefconsultant of ‘Strategic HR Promotion,
  2. 2. Karachi’ Visited Textile Institute ofPakistan on 12th August, 2009, deliveredan interesting and informative lecture onHuman Resource Management (HRM)which is briefly reported as follows:-1. Status of HRM in PakistanUptil the year 2000 traditional andconventional approach formed the basisof HRM in Pakistan as reported below:-a. Clarks of works approachThe clerks of works approach wasmainly concerned with routine personalfile keeping, dealings with Trade Unionsand maintenance of Industrial Relations.b. Personnel management approachThe Personnel Management Approachwas mainly concerned with negotiationsbetween Employer and Trade Unions.
  3. 3. 2. HR policy and procedure manualAfter the year 2000 the HRM approachhas changed significantly. It is nowbased on, “Maintenance of HR Policyand Procedure Manual.” Main concernsof this approach are listed below:  Job descriptions.  Person specification.  Demand for work force.  HR planning.The aforesaid approach is illustratedas a chart given as under:
  4. 4. 3. HRM inadequately practicedDr. Cheema discussed the causes ofinadequately practiced HRM in our localenvironments 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 organization.  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. 5. acceptable to the top managements especially the owners and managers.Some of the other reasons are listedbelow:  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. 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 organizations’. 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. Cheemaanswered questions raised by some of thefaculty members of the TIP. Mr. UmairSaied, Academic Coordinator of TIPthanked Dr. Cheema for sparing his timeand delivering an interesting lecture onHRM Systems.