om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp
ht

ht
University of Hertfordshire Business School

<M.A. Human Resource Management &

om
Employment Relations>

.c
or
at
<Comparison of Soft HRM Policies between UK and Pakistani
re

Organisations>
FC
D
tP
ar
m
.S

Author: S a l ma n S h a k i r
w
w
w

S t ud e n t N o : 08175705
://
tp

Supervisor: Kim Moody

ht

Submission Date: 24th September 2009

Ethics Number: BS/P/315-08

Final Word Count: 17053

om

om
.c

.c
or

or
at

at
re

re
FC

FC

Place Sticker Here

D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp
ht

ht
 1

om

om
TABLE OF CONTENTS

.c

.c
or

or
at

at
ACKNOWLEDGEMENTS«««««««««««««««««««« ««««««.3

re

re
FC

FC
ABSTRACT«««««««««««««««««««« ««««««««.««««.4

D
tP

tP
ar

ar
CHAPTER-1 INTRODUCTION«««««««« «««««««««««««««.5
m

m
.S

.S
w

w
1.1 THE SIGNIFICANCE OF SOFT HRM IN HEADCOUNT REDUCTION͙͙͙͙͙͙͙..5
w

w
1.2 RELEVANCE OF THE STUDY TO THE RESEARCHER͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙6
w

w
1.3 THE AIMS OF THE STUDY͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙6
://

://
tp

tp
1.4 THE RESEARCH CONTEXT ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙7
ht

ht
1.5 METHODOLOGY ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙7
1.6 FINDINGS AND RECOMMENDATIONS ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..8

CHAPTER ± 2 LITERATURE REVIEW«««««««««««««««««««« .. 9

2.1 INTRODUCTION ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.9

om
2.1 SOFT HRM VS HARD HRM͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙..9
2.3 HCM ± AN OFFSHOOT OF SOFT HRM ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.11

.c
2.4 or
SOFT HRM AND REDUNDANCY͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙12
at
2.5 REDUNDANCY AND µTOUGH LOVE¶ ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙13
re

2.6 SOFT HRM IN DEVELOPED COUNTRIES VS DEVELOPING COUNTRIES ͙͙.15

FC

2.7 CROSS-CULTURAL HRM ͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.16

D

2.8 SOFT HRM IN PAKISTAN ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙.20

tP

2.9 REDUNDANCY HANDLING IN PAKISTAN ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙..22

ar
m
.S

CHAPTER ± 3 METHODOLOGY«««««««««««««««««««« ««.. 24

w
w

3.1 INTRODUCTION ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.24

w
://

3.2 RESEARCH TASKS ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙24

tp

3.3 DATA GATHERING TECHNIQUES ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙.26

ht

3.4 ETHNOGRAPHIC RESEARCH͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙.27

3.5 PERSONAL SEMI-STRUCTURED INTERVIEWS ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙.27
3.6 TELEPHONIC INTERVIEWS ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙..28
3.7 QUESTIONNAIRES ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙.29
3.8 OBSERVATION ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙29
3.9 SUITABLITY OF CHOSEN TECHNIQUES FOR THE STUDY͙͙͙͙͙͙͙͙͙͙͙͙30
om

om

CHAPTER ± 4 ANALYSIS & FINDINGS«««««««««««««««««««..31

.c

.c
or

or
at

at

4.1 INTRODUCTION ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.31

re

re

4.2 FINDINGS͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙͙͙..31
FC

FC

4.3 DISCUSSION ͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙͙͙.45

D

D
tP

tP
ar

ar

CHAPTER ± 5 CONCLUSION«««««««««««««««««««« «««« 50

m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 2

om

om
CHAPTER ± 6 RECOMMENDATIONS«««««««««««««««««««« 53

.c

.c
or

or
at

at
SELF REFLECTION««««««««.«««««««««««««««««««« 53

re

re
FC

FC
REFERENCES«««««««««««««««««««« ««««««««..«« 53

D
tP

tP
ar

ar
APPENDICES«««««««««« ««««««««««««««««««««« 53
m

m
.S

.S
APPENDIX µA¶ (QUESTIONNAIRE)͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.62
w

w
w

w
APPENDIX µB¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.68
w

w
APPENDIX µC¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.71
://

://
APPENDIX µD¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.72
tp

tp
APPENDIX µE¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.73
ht

ht
APPENDIX µF¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.74
APPENDIX µG¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.75
APPENDIX µH¶ ͙͙͙͙͙.͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙..͙͙͙͙͙͙͙͙͙͙.76
APPENDIX µJ¶ (DISSERTATION PROPOSAL WITH REFERENCES)͙͙͙͙͙.͙͙..͙͙͙͙ ͙͙͙͙͙.80

om
.c
or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 3

om

om
.c

.c
or

or
ACKNOWLEDGEMENTS

at

at
re

re
FC

FC
I am highly grateful to my Supervisor Mr. Kim Moody as he instructed me at

D
tP

tP
each level of dissertation and took the trouble for going through my draft. I am
ar

ar
thankful to my parents for their support in my programme.
m

m
.S

.S
w

w
w

w
I was entertained very kindly and gently from all those I moved toward within T-
w

w
://

://
Mobile (UK), DHL (UK) as well as Mobilink (Pakistan) & Ufone (Pakistan).
tp

tp
ht

ht
Specifically Liz barnes (Head of Employee relations, T-Mobile), Laura Kenyon
(Human Resource Manager, DHL), Ardisher Kiyani (Business Centre manager,
Mobilink) and Arshia Saquib (Regional Head, HR, Ufone), who took out time to
answer my questionnaire.

om
.c
My Special Thanks to Mariam Bhabi who supported me throughout my
or
research.
at
re
FC

Last but not the least my kind gratitude to my dear friends Miss. Geng Qian, Mr.
D
tP

Moeen Siddiqui, Mr. Faisal Faisal, Mr.Danyal Ahmad & Imtiyaz Siddiqui for their
ar
m

invalueable suggestions and gracious cooperation all through the research.

.S
w
w
w

I would like to appreciate my tutors Michael Pye, Dr. David Allsop, Dr. Steve
://
tp

Shelly, Shiela Cohen and Eli Jacobs, who put their efforts to achieve results.
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 4

om

om
ABSTRACT

.c

.c
or

or
at

at
re

re
The current economic crisis has led to redundancies worldwide. When a

FC

FC
redundancy situation is combined with soft HRM, it is found to lessen the

D
tP

tP
adverse impact on those affected, as well as those left behind (CIPD, 2009).
ar

ar
m

m
The purpose of this study was to evaluate the soft HRM policies employed to
.S

.S
handle redundancies by cross-continental and cross-cultural organisations, in
w

w
w

w
w

w
order to identify the shortcomings in such policies being practiced in Pakistani
://

://
tp

tp
organisations as compared to UK organisations, and to suggest suitable
ht

ht
recommendations to the Pakistani organisations keeping the soft HRM of the
UK organisations as a benchmark.

Thirty-five different key aspects of soft HRM and redundancies were generated

om
from the literature review, and were encapsulated in the form of a questionnaire

.c
and semi-structured interviews. These two data gathering techniques were
or
at
combined with observation to generate concrete findings from all four
re
FC

organisations, two from each country. The organisations from Pakistan were
D

subjected to telephonic interviews due to certain limitations in time and budget.

tP
ar
m
.S

The findings generated as a result of the analysis undertaken highlighted

w

several shortcomings in the way Pakistani organisations are employing soft

w
w
://

HRM techniques to handle redundancies. These organisations were found to be

tp

disregarding soft HRM, and eliminating it from their application of the

ht

redundancy process almost completely. As opposed to that, the findings

showed the UK organisations to be in almost complete agreement with soft
HRM at times of Headcount reduction.
om

om

The gathered data and the generated findings allowed the researcher to
.c

.c
or

or

suggest concrete and feasible remedies to Pakistani organisations, keeping the

at

at
re

re

standards of soft HRM of the UK organisations as a benchmark for them to

FC

FC

follow. Furthermore, the conclusion to the study highlights areas where further
D

D
tP

tP

research can be conducted in this regard in the future.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 5

om

om
.c

.c
or

or
at

at
re

re
CHAPTER-1 INTRODUCTION

FC

FC
D

D
tP

tP
1.1 THE SIGNIFICANCE OF SOFT HRM IN HEADCOUNT REDUCTION
ar

ar
m

m
.S

.S
In a developed country like the UK, HRM is not only a well-established
w

w
w

w
w

w
discipline, but is also very widely studied and documented. The HRM policies
://

://
tp

tp
and procedures being practiced by all major organisations have become the
ht

ht
worldwide standards of HRM, and have been acknowledged by experts to
³place great importance not only on systematic recruitment but also on
selection, training and development procedures (involving socialization into the
corporate culture) emphasizing motivation through involvement in work

om
organisation, appraisal and incentive schemes´ (Rowley 1998, p.22). As

.c
opposed to this, in a third-world country like Pakistan, HRM strategies are not
or
at
standardised, and are not implemented effectively; and where they do exist, the
re
FC

management continue to focus on either µadministrative tasks or planning how

D

to control employees to minimize labour costs¶ (Khilji, 2001); thus employing the
tP
ar

Hard policies of HRM as opposed to the Soft policies being practiced in the UK.
m
.S

According to Armstrong (2006: 11), one of the seven major characteristics of

w

HRM is that it is ³based on the belief that people should be treated as assets
w
w
://

(human capital)¶. This view, however, is disregarded as far as Pakistani

tp

organisations are concerned, where the entire purpose of HRM becomes that of
ht

µobtaining added value from people by the processes of human resource

development and performance management´, and the emphasis is on the
µinterests of the management¶ rather than the employee (Armstrong, 2006).
om

om

During these times of economic recession, the importance of Soft HRM

.c

.c
or

or

increases immensely in value, as organisations have to downsize and

at

at
re

re

redundancy becomes a regular occurrence in most companies. Redundancies

FC

FC

have to be handled with care and sensitivity, and organisations must look to
D

D
tP

tP

incorporate soft HRM policies and procedures as far as redundancies are

ar

ar
m

concerned. In Pakistan, this is hardly the case, and a detailed study of soft HRM
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 6

om

om
in the UK is necessary in order to generate a more structured approach to soft

.c

.c
or

or
HRM in countries like Pakistan. Headcount Reduction has to be coupled with

at

at
re

re
soft HRM techniques if the workers in any organisation are to remain satisfied

FC

FC
and committed to the well-being of the organisation, and deliver an acceptable

D
tP

tP
work performance level.
ar

ar
m

m
.S

.S
1.2 RELEVANCE OF THE STUDY TO THE RESEARCHER
w

w
w

w
w

w
The researcher feels that Soft HRM is a much-ignored area in Pakistani
://

://
tp

tp
organisations, where most companies focus all their attentions on maximising
ht

ht
the business profits, be it at the cost of employee satisfaction and motivation.
Such a state of affairs can only be altered if an attempt is made to study this
scenario in detail and to introduce some positive changes to the HRM being
practiced in Pakistan. Since the researcher belongs to Pakistan, the research is

om
of immense personal value to him, and the interest of the researcher in studying

.c
the HRM techniques being applied in the UK and attempting to identify the
or
at
shortcomings in the HRM policies being practiced in Pakistan arises because of
re
FC

his personal affiliation with the country, and his wish to see the positive
D

practices being used by HRM in the UK being applied to organisations in

tP
ar

Pakistan.
m
.S
w

1.3 THE AIMS OF THE STUDY

w
w
://
tp

Through the chosen research topic, the researcher would aim to:
ht

• Investigate certain HRM techniques, particularly Redundancy and soft

HRM, being used in organisations in the UK.
• Compare and contrast these with the HRM techniques and policies in
place in similar Pakistani organisations.
om

om

• Identify weaknesses that exist in the soft HRM policies being used in the
.c

.c
or

or

Pakistani organisations, particularly in relation to Redundancies.

at

at
re

re

• Make recommendations on how to apply soft HRM techniques being

FC

FC

practiced in the UK to Pakistani organisations so as to enable them to

D

D
tP

tP

handle Headcount Reduction more effectively.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 7

om

om
.c

.c
or

or
at

at
re

re
1.4 THE RESEARCH CONTEXT

FC

FC
D

D
tP

tP
The context of the research is cross-cultural, whereby the researcher selected
ar

ar
m

m
two prominent organisations each, from the UK and Pakistan. The selected
.S

.S
organisations are similar enough to afford easier comparison, and are generally
w

w
w

w
w

w
representative of their category in their particular country. The chosen
://

://
tp

tp
organisations are selected from the telecommunications sector, as in Pakistan,
ht

ht
the telecommunications sector is developed enough to be comparable with
international organisations. From the UK the chosen organisations are T-Mobile
and DHL; whereas from Pakistan, the chosen organisations are Mobilink and
Ufone. The possibility of identifying flaws in the soft HRM techniques being

om
used during redundancies is based on the premise that the organisation has a

.c
reasonably established HR department. In addition, as the research has to be
or
at
carried out over a long distance, the researcher aimed to select an organisation
re
FC

with a somewhat more structured HR department, in order for the investigation

D

to proceed without major difficulties.

tP
ar
m
.S

1.5 METHODOLOGY
w
w
w
://

The main research methods used were Ethnography, Semi-Structured

tp

Interviews, Questionnaires and Observation. Four managers, one from each of

ht

the chosen companies, were approached for a semi-structured interview. Direct

participant observation was used at the UK site, whereas this approach could
not be employed for the Pakistani organisations since the interviews conducted
there were telephonic interviews. In addition, questionnaires were developed
om

om

and passed on to each of the managers, in order for the research to be more
.c

.c
or

or

structured and more comparable across all organisations. Although the

at

at
re

re

researcher wanted to introduce more breadth and diversity in the research by

FC

FC

including two organisations from each country, he also realises that by limiting
D

D
tP

tP

the research to the views of the four respective managers from each
ar

ar
m

organisation, a certain amount of subjectivity can be introduced into the study.

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 8

om

om
However, as the chosen managers were generally representative of the whole,

.c

.c
or

or
the researcher feels that this did not invalidate the research.

at

at
re

re
FC

FC
1.6 FINDINGS AND RECOMMENDATIONS

D
tP

tP
ar

ar
m

m
After careful analysis of the interviews and questionnaires from all four sites, the
.S

.S
researcher was able to compare the Soft HRM being practiced in all four
w

w
w

w
w

w
organisations with an emphasis on Redundancy handling. The analysis pointed
://

://
tp

tp
out several drawbacks in the way Pakistani organisations were handling
ht

ht
redundancies, and presented the researcher with the opportunity to offer some
recommendations to the Pakistani organisations on how to incorporate Soft
HRM policies in their handling of Redundancies, keeping the UK organisations
as benchmarks of good performance.

om
.c
or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 9

om

om
.c

.c
or

or
CHAPTER ± 2 LITERATURE REVIEW

at

at
re

re
FC

FC
2.1 INTRODUCTION

D
tP

tP
A wealth of material is present these days to cover what we term ³Human
ar

ar
m

m
Resource Management´. It was imperative to carry out a comprehensive
.S

.S
literature review of the relevant material in order to gain a perspective about the
w

w
w

w
w

w
HRM policies and procedures that are incorporated within the dissertation, i.e.,
://

://
tp

tp
soft HRM and headcount reduction. The review was carried out by studying
ht

ht
numerous books on the subject, as well as research through the internet in
order to clearly understand the various points of view that exist in relation to the
chosen subject, and to generate a more well-researched and well-grounded
introduction to the chosen topic, as well as to exclude any ideas not felt to be

om
relevant to the course of study for the purpose of the dissertation. The works of

.c
well-established pioneers were studied together with the more contemporary
or
at
writers of the field so that effective and informed ideas could be accumulated.
re
FC

The literature review is indeed exhaustive, and does suffice to lead to a more
D

thorough perception of the chosen area of study.

tP
ar
m
.S

2.1 SOFT HRM VS HARD HRM

w

A review of the existing literature has revealed that although Soft HRM is
w
w
://

considered to be of paramount significance to the very essence of HRM, as

tp

elaborated by Armstrong (2006), where he states that one of the seven major
ht

characteristics of HRM is that it is µbased on the belief that people should be

treated as assets (human capital)¶. The concept of people as not just any other
resource, but as human capital was generated by Beer et al. (1984). This view
is echoed by Storey (2007: 9) in his statement that ³human resource ought to be
om

om

nurtured as a valued asset, and not be regarded as an incidental cost´. Such

.c

.c
or

or

perception of the human resource within an organisation, although accepted as

at

at
re

re

credible these days by most authorities on the subject, is not however accepted
FC

FC

universally, at least not in so far as the practice itself is concerned. The

D

D
tP

tP

distinction between the µhard¶ and µsoft¶ sides of HRM is elaborated by Storey
ar

ar
m

(1989), that hard HRM treats employees as resources that through which an
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 10

om

om
organisation can gain competitive advantage, thereby leading to productivity,

.c

.c
or

or
whereas soft HRM treats employees not as resources but as µvalued assets¶

at

at
re

re
and a source of competitive advantage. In short, hard HRM implies the belief

FC

FC
that it is what people do within an organisation that brings a competitive edge,

D
tP

tP
while soft HRM implies that it is the people themselves that are the competitive
ar

ar
m

m
edge.
.S

.S
w

w
w

w
w

w
Whereas theoretically it is a major belief of HRM that human resource is an
://

://
tp

tp
asset and should be treated as such (Storey, 2001), in practice management is
ht

ht
more prone to viewing the employees as a cost, or the means, and the
organisations productivity as the end. According to Guest (1999), the
employees are more often than not µregarded as a commodity¶, and, as added
to by Armstrong (2006), the entire purpose of HRM becomes that of µobtaining

om
added value from people by the processes of human resource development and

.c
performance management¶, and the emphasis is on the µinterests of the
or
at
management¶ rather than the employee. This is particularly so in the third-world
re
FC

countries like Pakistan and a major purpose of carrying out this literature review
D

is to attempt to gain an understanding of the way that theory differs from actual
tP
ar

practice in Pakistan, and where µtight control¶ of employees, i.e. hard HRM, is
m
.S

practiced more often than not, rather than treating them as µvalued contributors¶
w

(Wilson, 2005).
w
w
://
tp

Practicing soft HRM can benefit the organisations by improving its productivity
ht

through greater employee commitment, as stated by Walton in Legge (1995:

64) that HRM policies ³promote mutuality ± mutual goals, mutual influence,
mutual respect, mutual rewards and mutual responsibility. He goes on to say
that µpolicies of mutuality will elicit commitment, which in turn will yield both
om

om

better economic performance and greater human development´. The

.c

.c
or

or

importance of mutuality has been noted by Legge(1995), that µhuman resources

at

at
re

re

may be taped most effectively by mutually consistent policies that promote

FC

FC

commitment, and which, as a consequence, foster a willingness in employees

D

D
tP

tP

to act flexibly in the interests of the organisations pursuit of excellence¶. Soft

ar

ar
m

HRM ³while still emphasizing the importance of integrating HR policy with

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 11

om

om
business objectives, sees this as involving treating employees as valued, a

.c

.c
or

or
source of commitment, adaptability and high quality´ (Legge in Ackroyd et al.,

at

at
re

re
2006: 224). One of the purposes of this dissertation is to point out the absence

FC

FC
of such policies of mutuality and the presence of µcompliance rather than

D
tP

tP
commitment¶ (Legge, 2005). Furthermore, Soft HRM µis an approach that
ar

ar
m

m
acknowledges the importance of HRM to the aims of the business, whilst
.S

.S
reflecting attempts by management to create a work environment that
w

w
w

w
w

w
emphasises employee development, through practices such as training,
://

://
tp

tp
participation and communication, and the importance of having innovative,
ht

ht
flexible, committed employees who are valued resources¶ (Kane, Crawford and
Grant 1999: 496).

There are those who believe that soft HRM is just hard HRM in disguise (Legge

om
1995), and that purely soft HRM is hardly practiced in itself and is mixed in with

.c
hard policies (Poole, 1999). According to Truss in Gratton (1999: 57) ³even if
or
at
the rhetoric of HRM is soft, the reality is often hard, with the interest of the
re
FC

organisation prevailing over those of the individual´. Our purpose here,

D

however, is not to identify flaws in soft HRM as it is defined and practiced in the
tP
ar

UK, rather to point out those situations where these soft policies are missing
m
.S

from organisations in Pakistan and only hard HRM is practiced. According to

w

Legge in Armstrong (2006: 12), hard HRM treats employees ³as a resource to
w
w
://

be managed in the same rational way as any other resource being exploited for
tp

maximum return´. Such an approach has its associated drawbacks, mainly that
ht

of lower employee commitment. In the UK, soft HRM policies are being
practiced to quite an extent, matching up well to Kant¶s advice to ³treat people
as ends unto themselves rather than as means to an ends´ (Armstrong, 2006:
12). However in Pakistan employees are still regarded as means to an end,
om

om

rather than as human capital.

.c

.c
or

or
at

at
re

re

2.3 HCM ± AN OFFSHOOT OF SOFT HRM

FC

FC

The recognition of employees as human capital has led to the formation of

D

D
tP

tP

Human capital management (HCM), which is distinguished from human

ar

ar
m

resource management in its use of ³metrics to guide an approach to managing

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 12

om

om
people that regards them as assets and emphasizes that competitive advantage

.c

.c
or

or
is achieved by strategic investments in those assets through employee

at

at
re

re
engagement and retention, talent management and learning and development

FC

FC
programmes´ (Armstrong, 2006: 29). According to the more contemporary

D
tP

tP
authors and experts, such as Kearns (2005), in HCM µpeople are value-adders,
ar

ar
m

m
not overheads, whereas in HRM µpeople are a significant cost¶. This recent view
.S

.S
of HRM as being devoid of the concept of people as assets, however, is not
w

w
w

w
w

w
echoed by the more established authors on the subject, such as Beer et al.
://

://
tp

tp
(1984), who consider employees to be a longer-term asset to the organisation,
ht

ht
and Grant in Cornelius (2001: 300), who states that ³the commitment and
loyalty of employees determine the firms ability to maintain competitive
advantage´ is one of the main characteristics of HRM. Thus our study does not
attempt to take HRM to mean just hard HRM and HCM to imply soft HRM,

om
rather to focus on soft HRM as an integral part of HRM and to point out the lack

.c
of soft HRM in Pakistan. As noted by Armstrong (2006: 32), HCM ³strengthens
or
at
the HRM belief that people are assets rather than costs´. If we were to take
re
FC

away soft HRM from HRM and substitute it with HCM, not only would we in
D

effect be negating the work of many well-established experts on the subject, we

tP
ar

would also be unable to proceed as in Pakistan the HRM being practiced is not
m
.S

as up-to-date as in the more developed countries of the world, and therefore is

w

taken to encompass everything relating to human resource, including human

w
w
://

capital (Mahmood, 2006). Even in the UK, HRM is still the accepted norm, as
tp

stated by Armstrong (2006: 32), ³the concept of HCM complements HRM, it

ht

does not replace it´. For the purpose of our study, soft HRM and human capital
are very much a part of human resource management, and that µa main strand
of HRM proposes that in common with other capital inputs, employees should
be treated as an investment, whose value can be enhanced by integrated
om

om

systems of appraisal, training, development and involvement¶ (Hyman and

.c

.c
or

or

Mason, 1995).
at

at
re

re
FC

FC

2.4 SOFT HRM AND REDUNDANCY

D

D
tP

tP

HRM policies are abundant, and deal with many varying aspects concerning
ar

ar
m

employees. One of these is the handling of Redundancy; which has gained

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 13

om

om
immense significance in these times of economic difficulty, not just in the UK,

.c

.c
or

or
but in all parts of the world, including Pakistan. From this perspective, in order

at

at
re

re
to view HRM policies relating to Redundancy in Pakistan, it is important to have

FC

FC
a good grip of the existing literature on the subject. According to Armstrong

D
tP

tP
(2006: 154), the Redundancy policy of an organisation should state that the
ar

ar
m

m
organisation will use µits best endeavours to avoid involuntary redundancy and
.S

.S
that in case such a step becomes necessary, as in times of recession, the
w

w
w

w
w

w
affected employees will be given µfair and equitable treatment, the maximum
://

://
tp

tp
amount of warning, and every help that can be provided by the organisation to
ht

ht
obtain suitable alternative work.¶ Such a Redundancy policy, while probably in
place within the UK due to the practice of soft HRM, will be likely absent from
Pakistani organisations, and the purpose of this literature review is to gain
enough of an understanding of the subject area in order to point out those gaps

om
where they exist and to suggest appropriate remedies. According to the CIPD

.c
(2009), ³In any redundancy situation, the immediate priority is the fair and
or
at
sensitive treatment of employees who are losing their jobs. Once this has been
re
FC

achieved, the organization¶s ongoing effectiveness in today¶s competitive

D

market is largely dependent on the morale of the survivors.´ This statement

tP
ar

itself is indicative of the amount of importance placed on Soft HRM policies in

m
.S

matters of Redundancy.
w
w
w
://

2.5 REDUNDANCY AND µTOUGH LOVE¶

tp

It can be possible that it order to achieve µexternal fit¶, i.e., to match HRM
ht

policies like Redundancy with business strategies, an organisation may

compromise on the creating of quality, flexibility and commitment of workforce
(Legge, 1989). Such an approach, of matching HRM policies with business
strategies involves the use of hard HRM and entails the cutting of costs rather
om

om

than the investment in human capital (Tropman and Adams, 2001). In some
.c

.c
or

or

organisations, soft HRM is reserved for the higher level employees, which
at

at
re

re

furthers the weakening of the µinternal fit¶ within the organisation (Legge, 1989).
FC

FC

Furthermore, many organisations consider the reduction of employees as

D

D
tP

tP

perfectly justifiable according to the practice of µtough love¶; that employees

ar

ar
m

µneed to be developed but this will not be achieved through treating them with
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 14

om

om
soft care¶, and that ³it is very easy to forget when endeavouring to develop

.c

.c
or

or
people and to care for them, that the needs of the business must come first´

at

at
re

re
(Barnham et al, 1988: 28). It is not in the interest of this study to agree with such

FC

FC
a policy of µtough love¶, as distinguished by some from µmacho management¶,

D
tP

tP
rather, to see it is as another rationale for expending the goals of the
ar

ar
m

m
organisation at the cost of the employees, as Foulkes in Storey (1989: 33) puts
.S

.S
it: ³µCare¶ for the individual appears essentially as respect for employees µability
w

w
w

w
w

w
to be developed¶ in ways that the organisation deems appropriate, and,
://

://
tp

tp
implicitly, to be µman enough to take it¶ if personal sacrifice for the good of the
ht

ht
organisation is required.´

In plain words, µtough love¶ is the term used to justify the alignment of the
external fit, i.e., hard HRM, with internal fit, i.e., soft HRM. If an employee is no

om
longer µappropriate¶ as deemed so by the organisation, his/her removal requires

.c
µtough love¶, i.e., ³a tough decision may have to be made in loving concern for
or
at
the employees the company wishes to retain, who depend on its survival and
re
FC

growth´ (Storey, 1989: 34). The second approach to achieving integration is by

D

attempting to re-evaluate the business strategies, instead of attempting to

tP
ar

match HRM policies with the business strategies, and recognising the
m
.S

importance of creating a quality workforce through retraining and employee

w

involvement programmes. We will be focusing our study on this second

w
w
://

approach, attempting to identify elements that suggest the absence of such

tp

practices from workplaces. It is not within the scope of this work to focus on the
ht

benefits of any one approach over the other, rather to propose the use of soft
policies in Pakistani organisations, and hence the object of this literature review
is to understand completely the existing sides to the debate in order to identify
the absence of soft policies from Pakistani organisations in comparison to
om

om

organisations within the UK.

.c

.c
or

or
at

at
re

re

We will start by gaining a brief but necessary insight into the various cultural,
FC

FC

social and political factors that influence the practice of HRM in Pakistan,
D

D
tP

tP

coupled with a discussion about the differences in the way HR is practiced in

ar

ar
m

the West as opposed to the developing countries of the world like Pakistan;
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 15

om

om
leading into a discussion of the state of soft HRM in Pakistan, and finally a

.c

.c
or

or
debate over the HR policy of Redundancy being practiced in Pakistan as

at

at
re

re
opposed to the West.

FC

FC
D

D
tP

tP
2.6 SOFT HRM IN DEVELOPED COUNTRIES VS DEVELOPING
ar

ar
m

m
COUNTRIES
.S

.S
There are only a handful of books available on the state of HRM in Pakistan and
w

w
w

w
w

w
the policies being used there, and the works of Budhwar and Debrah (2004)
://

://
tp

tp
provide valuable insight into the HRM practice in Asian countries, with Khilji
ht

ht
(2001) providing expertise on the HRM in Pakistani organisations, in addition to
the background of economic, social and political situation of the country. These
modern or western concepts of HRM have begun to be embraced by
developing countries due to the fast paced globalisation that is taking place,

om
forcing the developing nations of the world to keep up with the competition

.c
being provided by the companies from the western nations. This in itself can
or
at
prove to be beneficial for the transformation of µPersonnel Management into
re
FC

Human Resource Management¶ in developing countries (Budhwar & Debrah

D

2001). Furthermore, according to Debrah and Smith (2000: 447), ³globalisation,

tP
ar

along with increasing international competitiveness, and new technologies and

m
.S

innovations in production and management, are some of the driving forces

w

behind the changes and new developments in HRM in developing countries´.

w
w
://

Budhwar & Debrah (2001) further elaborate this point by stating that
tp

globalisation has ushered in economic liberalisation and restructuring, which

ht

has in turn led to rapid changes in the way HRM was being practiced in
developing countries, and have brought HRM policies more in line with western
concepts.
om

om

Such a transition can prove to be a vital one for the success of HRM in
.c

.c
or

or

developing countries, many of which are in need of a serious re-organisation of

at

at
re

re

their HRM policies and procedures (Legge, 2005). Pakistan, being a third-world
FC

FC

country, has all the problems such countries face and more. With a human
D

D
tP

tP

development index of 136 out of 177 countries, and only about 3% of GDP
ar

ar
m

allocated to education (Budhwani, 2008), the country is staggeringly behind

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 16

om

om
other countries of the world, and thus it comes as no surprise that it has not

.c

.c
or

or
been able to structure itself as far as HRM is concerned. There is an acute

at

at
re

re
shortage of well-qualified staff, and added to that is the lack of funds provided

FC

FC
by the government. With no input going into the development and structuring of

D
tP

tP
HRM, the outcome can hardly be expected to be miraculous (Aftab, 2007).
ar

ar
m

m
Multinational companies are considered to be the leaders of this transformation
.S

.S
in a country like Pakistan, and they are relied upon to bring in the western
w

w
w

w
w

w
concepts into workplaces (Khilji, 2001). Even so, the very vocational training
://

://
tp

tp
being provided for HRM is insufficient in Pakistan to provide a sufficient
ht

ht
workforce for this sector. The general assumption is that you do not need to
specialise in HRM for a job in HR, and anyone can carry it out. For this reason,
the people working in offices in the HR Division are more often than not those
with MBA degrees (Khilji, 1999). I am personally aware of a person with an MA

om
in Literature working as a Human Resource Manager in a company in Pakistan.

.c
With such a basic structural fault, HRM cannot be expected to thrive. Lack of
or
at
focus on HRM, even in professional educational institutions; coupled with a
re
FC

failure to see it as a separate entity rather than as a module of MBA, has

D

resulted in a severe shortage of specialised HR staff.

tP
ar
m
.S

2.7 CROSS-CULTURAL HRM

w

One reason why western concepts of HRM are so different from the concepts in
w
w
://

developing or eastern countries is that although western countries are, to a

tp

great extent, uniform in their cultures, the eastern countries are more unique
ht

and display individualism which is reflected in the way their HRM operates
(Kohn, 1990). This differentiation accounts for the absence of any single
concept of HRM being practiced across developing countries. The west has,
over time, laid down clear-cut and well defined characteristics of HRM, which
om

om

profess a great deal of professionalism, and, according to Rowley (1998: 22)

.c

.c
or

or

³places great importance not only on systematic recruitment but also on

at

at
re

re

selection, training and development procedures (involving socialization into the

FC

FC

corporate culture) emphasizing motivation through involvement in work

D

D
tP

tP

organisation, appraisal and incentive schemes´. This however is not so in a

ar

ar
m

developing country like Pakistan, where HRM still is not being practiced in its
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 17

om

om
true, or western, sense. If you compare HRM of today with that of a decade

.c

.c
or

or
ago, then certainly you will observe a pattern of growth, as suggested by some

at

at
re

re
scholars like McLean et al, (2006), however, if a comparison is drawn between

FC

FC
HRM in Pakistan and that in other developed countries of the world, such as the

D
tP

tP
UK, much will be observed to be lacking in the former Budhwani (2008).
ar

ar
m

m
.S

.S
In order to study HRM from a cross-cultural perspective, Budhwar & Debrah
w

w
w

w
w

w
(2001) have proposed three kinds of variables that impact the practice of HRM
://

://
tp

tp
across nations: national factors, contingent variables and organisational
ht

ht
strategies. Each of these can have an impact on the HRM concepts prevailing
in any one nation as opposed to another. According to Budhwar & Debrah
(2001: 238) the impact of the environment on the way HRM functions in any
particular country is immense ± ³external environmental factors and internal

om
work cultures influence both micro and macro level organisational policies´. The

.c
external environment has often been seen to be the hindrance to the
or
at
development of successful management practices in developing countries
re
FC

(Kohn and Austin, 1990). The relatively stable external environment of the
D

western nations have contributed to the fairly stable and uniform HRM practices
tP
ar

and procedures, however, the very opposite and extremely volatile and unstable
m
.S

external environment in much of the developing world forces HRM managers to

w

develop practices and procedures to deal with such an environment. It can thus
w
w
://

be difficult to adapt to the western concepts of HRM for such troubled nations
tp

like Pakistan (Budhwar & Debrah, 2001). These external influences, coupled
ht

with internal factors such as work culture etc, determine the kind of HRM
policies to be followed by each nation and each firm within that nation.
However, in spite of these differences, according to Budhwar & Debrah (2001:
238) ³there are more similarities than differences in the way national cultures
om

om

and national institutions influence HRM in different countries´. HRM trends and
.c

.c
or

or

practices, just like many other practices, have been subject to influences
at

at
re

re

ranging from religious to traditional cultural influences to colonial and western

FC

FC

influences (Schuler & Jackson, 2007). A result of all these influences is that
D

D
tP

tP

while countries like Pakistan, Iran and Saudi Arabia might differ in some ways,
ar

ar
m

the presence of the Islamic influence is evident in the HRM in all these
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 18

om

om
countries, much in the same way, almost all of the colonised nations, such as

.c

.c
or

or
Pakistan, India, South Africa etc, display common western influences in their

at

at
re

re
HRM concepts (Budhwar & Debrah, 2001).

FC

FC
D

D
tP

tP
A highly comprehensive study about the implications of culture on the business
ar

ar
m

m
environment and the values in the workplace of a country was conducted by
.S

.S
Prof. Geert Hofstede. According to Hofstede five Cultural Dimensions help to
w

w
w

w
w

w
assist in differentiating cultures: Power Distance - PDI, Individualism - IDV,
://

://
tp

tp
Masculinity - MAS, Uncertainty Avoidance ± UAI and Long-Term Orientation ±
ht

ht
LTO (Hisrich, 2009). According to Hofstede¶s graphs in IBCN (2005) illustrating
the Dimension scores and other demographics for Pakistan, an understanding
can be gained of the culture and society as a whole, which can then lead to an
understanding of the workplace culture of the country. Pakistan¶s graph shows

om
that ³There is a high correlation between the Muslim religion and the Hofstede

.c
Dimensions of Power Distance (PDI) and Uncertainty Avoidance (UAI) scores´
or
at
(IBCN, 2005). According to Taylor in IBCN (2005), ³The combination of these
re
FC

two high scores (UAI) and (PDI) create societies that are highly rule-oriented
D

with laws, rules, regulations, and controls in order to reduce the amount of
tP
ar

uncertainty, while inequalities of power and wealth have been allowed to grow
m
.S

within the society. These cultures are more likely to follow a caste system that
w

does not allow significant upward mobility of its citizens.´

w
w
://
tp

This outcome of Hofstede¶s graph for Pakistan is in accordance with a research

ht

by Khilji (1995), who states that the corporate culture of Pakistan is such that
authority is unquestionable, leading to a tighter control over all departments and
individuals. Such a culture does not promote a sound integration of HRM into
the organisation as a vital component; rather it gives the impression that HRM
om

om

has been incorporated into most organisations as an ornament to give the

.c

.c
or

or

suggestion of development, with hardly any traces of soft HRM being practiced
at

at
re

re

as it should be (Legge, 1998). According to Sathe in Clark et al. (1994: 374),

FC

FC

³people feel a sense of commitment to organisations objectives when they

D

D
tP

tP

identify with those objectives and experience some emotional attachment to

ar

ar
m

them´. In order for any emotional attachment to be generated, soft HRM policies
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 19

om

om
such as ³participation, team working and briefing, multi skilling, developmentally

.c

.c
or

or
oriented appraisal, reward and training policies´ etc need to be in place, as

at

at
re

re
commitment is linked to these policies (Legge, 2005). The volatile political

FC

FC
climate of Pakistan does not favour a steady growth and implementation of

D
tP

tP
HRM. The government has always held sway over the working of organisations,
ar

ar
m

m
and interfered even in matters of hiring and firing. Similarly, the strongly
.S

.S
politicised unions have often forced organisations to run the way they wanted,
w

w
w

w
w

w
not necessarily acting on behalf of the employees (Khilji, 1999). The unions
://

://
tp

tp
have had in the past the power to get anyone fired, or keep anyone from getting
ht

ht
fired, on the basis of the political protection they enjoyed. Similarly, the
government or the military have had the power to fire the CEOs and appoint
new ones whom they wish to favour. Military dictators have left their mark on
this system by appointing military personnel as heads of almost all departments,

om
divisions and institutions, including research organisations and universities,

.c
during their period of rule or
at
re
FC

These influences tend to have a negative impact on HRM functions such as

D

recruitment, redundancy, promotions, performance appraisals, demotions and

tP
ar

compensations (Budhwar & Debrah, 2001). These traditional and cultural or

m
.S

religious beliefs start to interfere with the objective concepts of HRM and
w

³compromise the integrity and efficiency of formal bureaucratic systems

w
w
://

injecting an air of subjectivity in HR functions´ (Kiggundu¶s in Budhwar &

tp

Debrah, 2004: 239). As opposed to this, Western HRM is free from all these
ht

influences, and has, over time, evolved into a complete and efficient entity in
itself. It has well-defined structures, functions and practices that are not
dependent on religious, cultural, social or traditional beliefs; rather, they remain
uniform and consistent for all organisations and all employees no matter what
om

om

their caste, race, religion or ethnicity. Such consistency has led to the
.c

.c
or

or

emergence of Western HRM as a strong presence in organisations, whereas

at

at
re

re

HRM in developing countries is still struggling to define itself, and is still in its
FC

FC

infancy (Budhwar & Debrah, 2001). Although these western concepts have to
D

D
tP

tP

some extent been implemented in developing countries in the private sector or

ar

ar
m

the MNCs, the sad fact is that the majority of the companies still tend to follow
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 20

om

om
their very own HRM practices that vary from company to company, employer to

.c

.c
or

or
employer and manager to manager. Many of the influences have become so

at

at
re

re
ingrained in the corporate mindset that it is very difficult to do without them;

FC

FC
such as the huge amount of red-tape-ridden bureaucratic procedures and

D
tP

tP
immense amount of legislation that the colonised nations of the world have
ar

ar
m

m
inherited from the British rule (Budhwar & Debrah, 2001). As a result, while
.S

.S
some private firms and MNCs in countries like Pakistan have come out of this
w

w
w

w
w

w
influence, the vast amount of state companies and small organisations are still
://

://
tp

tp
under this influence, implying that HRM functions like recruitment etc are still
ht

ht
subject to bribery and contacts.

2.8 SOFT HRM IN PAKISTAN

In a country like Pakistan, HRM is still at the ³embryonic stage´ (Khilji in

om
Budhwar & Debrah, 2004: 104). According to research (Khilji, 1999) out of a

.c
total of fifteen Pakistani organisations, only three had efficient and completely
or
at
integrated HRM. In the remaining twelve organisations, HRM was being
re
FC

introduced in parts; certain HRM policies and procedures were in place while
D

others were not. Most of these organisations ³suffer from a lack of

tP
ar

communication, a gap between managers promises and implementation of

m
.S

policies and an inconsistency of HRM practices among employees and the

w

centralised structure of the organisation´ (Khilji in Budhwar & Debrah, 2001:

w
w
://

104). Such a scenario leads to employee dissatisfaction, which in turn has a

tp

negative impact on job performance, not to mention, overall company

ht

productivity. Furthermore, according to Khilji (2001), employees are not

encouraged to give feedback, neither is their feedback sought, and HR policies
are µformulated in isolation¶; all this leads to a low level of commitment in
employees, coupled with a sense of detachment from their workplace. Such a
om

om

state of affairs can only be altered if the developing countries are willing to fully
.c

.c
or

or

embrace western concepts of HRM which are much better structured than those
at

at
re

re

of the developing world.

FC

FC
D

D
tP

tP

Although things have been improving to some extent, as far as privatisation is

ar

ar
m

concerned, since the 1990s, the political climate is still acting as a major
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 21

om

om
obstacle for the grounding of HRM (Khilji, 1995). With the onset of Privatisation,

.c

.c
or

or
many organisations have been encouraged to adopt soft HRM and modern

at

at
re

re
management policies by the government and many multinational companies

FC

FC
have been seen to initiate HRM as a vital organisational component (Aftab,

D
tP

tP
2007). According to a newspaper columnist (Hussain, 1999) ³Wherever we look
ar

ar
m

m
± from the railways to the police, and from civil bureaucracy to parliamentary
.S

.S
democracy ± an unbroken vista of rubble, broken promises and failed potential
w

w
w

w
w

w
meets the eye. Wherever there has been progress, it has been largely due to
://

://
tp

tp
individual initiative and determination´. According to Hyman and Mason (1995:
ht

ht
5) ³people have the potential to provide competitive advantage´ and that
³management styles should reflect the central importance of people as assets to
be utilised in order to offer optimum benefits to the business´. HR practices
should be designed in such a manner that certain outcomes such a µhigh

om
employee commitment¶, µhigh quality¶ and µflexibility¶ can be achieved (Guest in

.c
Mabey et al, 1998: 532). The practice of soft HRM is essential in order to
or
at
generate µthe commitment necessary for the release of organisationally useful
re
FC

behaviours is deployed¶ (Wilson, 2005).

D
tP
ar

Although HRM practices have been employed in Pakistan in most

m
.S

organisations, the majority of the organisations like government offices,

w

corporations and smaller businesses continue to focus on either ³administrative

w
w
://

tasks or planning how to control employees to minimize labour costs´ (Khilji,

tp

2001: 116). It is only in a handful of multinational organisations that any traces

ht

of soft HRM in the sense of employee retention can be found with the use of
managers to act as µculture builders¶ (Khilji, 2001). Such multinationals follow
the approaches of soft HRM and treat employees as source of competitive
advantage, and according to Khilji (2001) they strive to increase employee
om

om

productivity by investing in them, adopting a feed-back oriented MBO approach

.c

.c
or

or

and linking performance evaluation to their career development¶. Aside from the
at

at
re

re

multinationals, some large companies have started following their footsteps in

FC

FC

an attempt to gain competitive advantage, but even in these, soft HRM is almost
D

D
tP

tP

non-existent, and according to Khilji (2001: 117), ³training is neither organised

ar

ar
m

nor actually tied to individual career development´. The majority of the smaller
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 22

om

om
businesses and organisations are still employing on the basis of social status

.c

.c
or

or
and have no interest in the employees welfare at all; training is not deemed of

at

at
re

re
any significance whatsoever and µlimited to the bare minimum¶ (Khilji, 2001:

FC

FC
117). These organisations have no idea of soft HRM policies and these

D
tP

tP
concepts are µalien¶ to them (Qureshi, 1995). Such a practice whereby ³good
ar

ar
m

m
performance is believed to go unrewarded´ is at the basis of low employee
.S

.S
commitment and quality, leading to a lack of µstriving for excellence¶ (Qureshi,
w

w
w

w
w

w
1995).
://

://
tp

tp
ht

ht
2.9 REDUNDANCY HANDLING IN PAKISTAN
According to the CIPD (2009), organisations must ³handle redundancies in a
responsible, fair and effective way´. The policy of Redundancy in Pakistan,
however, is still very new to most organisations, who basically believe in hiring

om
and firing at will, as in Pro Pakistani (2009) ³Downsizing is mostly done when

.c
there arises a need, but that¶s not the only rule, we have seen organizations
or
at
downsizing even when a need was not in place´. The Recession in Pakistan
re
FC

particularly hit the banking and Advertising sectors (Pro Pakistani, 2009), and
D

the significance of Redundancy increases during recession as most companies

tP
ar

look to optimize their workforce. According to the CIPD (2009), ³a genuine

m
.S

redundancy only arises when either there has been, or is going to be: a
w

cessation of business, a cessation of business at the employee¶s site or a

w
w
://

reduction or cessation of work´. However, in Pakistan, this is far from the truth,
tp

as Pro Pakistani (2009) very accurately describes downsizing in Pakistan,

ht

calling it ³team-sizing´ ± i.e., when one CEO or the head of any company retires
and is replaced, the new CEO replaces the entire team when he/she joins.
According to Pro Pakistani (2009), most organisations still lay off employees on
the basis of non-performance simply by ³But just informing of non performance
om

om

and giving a job dismissal letter at spot.´ Some professional organisations

.c

.c
or

or

practice ³retaining the workforce instead of lay-offs, because of the cost they
at

at
re

re

incurred on developing single personnel for a particular job´ however these are
FC

FC

merely a few MNCs as mentioned earlier (Pro Pakistani, 2009). Most

D

D
tP

tP

companies do not follow the ILO when it comes to Redundancy. According to

ar

ar
m

the CIPD (2009), ³Redundancy is one of the most traumatic events an

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 23

om

om
employee may experience. Announcement of redundancies will invariably have

.c

.c
or

or
an adverse impact on morale, motivation and productivity. The negative effects

at

at
re

re
can be reduced by sensitive handling of redundant employees and those

FC

FC
remaining.´ However, such a concept is alien to most Pakistani organizations,

D
tP

tP
who fail to treat Redundancy with the Soft HRM techniques as in the UK, which
ar

ar
m

m
not only adversely affects the personnel being made redundant, but has a
.S

.S
negative impact on the remaining employees, and hence the overall business
w

w
w

w
w

w
environment. As the CIPD (2009) claims, ³a demoralized workforce, anxious
://

://
tp

tp
about job security and critical of the handling of the redundancies of colleagues,
ht

ht
is not likely to display commitment, enthusiasm and initiative.´

As regards to the main research, primary research will have to be conducted to

investigate the HRM policies in use in both the UK and Pakistani organisations,

om
but the literature review has leant a considerable amount of depth to my

.c
knowledge about the subject. or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 24

om

om
.c

.c
or

or
CHAPTER ± 3 METHODOLOGY

at

at
re

re
FC

FC
3.1 INTRODUCTION

D
tP

tP
The research design is Comparative in nature, whereby the same variable, i.e.,
ar

ar
m

m
the standard of soft HRM in place to handle headcount reduction, has been
.S

.S
analysed and investigated across the HR departments of cross-cultural
w

w
w

w
w

w
organisations. The researcher deemed it appropriate to carry out Qualitative
://

://
tp

tp
research, keeping in mind that the theoretical parts of the study were going to
ht

ht
be generated after extensive research. In order to generate the theory, inductive
methodology has been used. The selection of the inductive methodology was
made based on the type of research question being asked, which required that
extensive research be carried out in order to generate answers. The Deductive

om
approach was not considered appropriate, as there was no initial theory to start

.c
out with, and the theory had to be generated via research. The Inductive
or
at
approach was most suitable for carrying out extensive qualitative research. The
re
FC

epistemological orientation of the study was interpretivist, whereby the

D

researcher was able to view the fundamentals of HRM techniques though the
tP
ar

viewpoint of the concerned managers. The ontological orientation of the study

m
.S

was constructivist, generating knowledge and learning from first-hand

w

experience gained by carrying out the field-work.

w
w
://
tp

3.2 RESEARCH TASKS

ht

The main tasks the researcher was confronted with were the selection of the
appropriate organisations, which can be representative of the general work
environment of the country, and which can provide a look at the HRM policies
being used; the formulation of a set of relevant questions that can be used at
om

om

the interview sessions in both the countries, enabling the researcher gain
.c

.c
or

or

accurate information from the interviewees and use it to compare and contrast
at

at
re

re

the two scenarios; the arrangement for the initial and any subsequent interviews
FC

FC

in the UK site, trying to keep the number of interviews required at a minimum,

D

D
tP

tP

and to generate the maximum amount of information and observation per

ar

ar
m

interview; and finally the telephonic interviews with the Pakistani counterparts.
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 25

om

om
The selection of the organisations to be examined was done with a view to

.c

.c
or

or
select organisations with similar functions across both countries, in order to

at

at
re

re
afford more comparability. The telecommunications sector was chosen, based

FC

FC
on the fact that in a developing country like Pakistan, many telecommunications

D
tP

tP
companies are emerging which claim to adhere to international standards. A
ar

ar
m

m
comparison of such a company with a similar one in the U.K would enable the
.S

.S
researcher to generate more concrete differences and similarities between the
w

w
w

w
w

w
two, and hence to suggest remedies. Secondly, in Pakistan, most organisations
://

://
tp

tp
do not yet have an established HR department, and hence to attempt to carry
ht

ht
out an investigative research in any such company would not have been
appropriate, seeing that the researcher seeks to identify the shortcomings in the
soft HRM and headcount reduction procedure, which would only be possible to
do in a company with an established HR department. Thirdly, the more

om
structured an organisation is, the easier it becomes to carry out an investigative

.c
study of that organisation, especially if the study has to be done over a long
or
at
distance.
re
FC
D

For diversity in the research, as well as more breadth in the scope of the study,
tP
ar

two organisations were selected from each country. This allowed the researcher
m
.S

to gain an understanding of the soft HRM and headcount reduction across a

w

wider sample and to rate the findings as being more indicative of the general
w
w
://

practice in other organisations of the country. However, for the reasons

tp

mentioned earlier, the selected organisations were similar in their structure.

ht

Four managers, one from each of the chosen organisations, were interviewed.
Although this did limit the research, as the researcher had to rely on the
subjective opinions of a small, though important, group of people, it did not
invalidate the research, as the chosen members were generally representative
om

om

of the whole.
.c

.c
or

or

The organisations included as part of the research study from the UK are listed
at

at
re

re

below together with the names and designations of the interviewees:

FC

FC

• T-Mobile Head Office, Hatfield.

D

D
tP

tP
ar

ar

Interviewee: Liz Barnes, Head of Employee Relations

m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 26

om

om
• DHL, Hatfield.

.c

.c
or

or
at

at
Interviewee: Laura Kenyon, Human Resource Manager.

re

re
FC

FC
The organisations included as part of the research study from Pakistan are

D
listed below together with the names and designations of the interviewees:
tP

tP
ar

ar
• Mobilink, Peshawar.
m

m
.S

.S
w

w
Interviewee: Ardisher Kiani, Business Centre Manager
w

w
w

w
• Ufone, Islamabad.
://

://
tp

tp
ht

ht
Interviewee: Arshia Saquib, Regional Head HR

3.3 DATA GATHERING TECHNIQUES

The HRM policies being used in all the organisations were investigated at
length to produce the relevant conclusions. The researcher welcomed the

om
opportunity to combine several communication methodologies, based on their

.c
or
unique features, benefits, and suitability for the kind of research being
at
re

undertaken. According to Cooper & Schindler (2005: 269), ³the optimal

FC

communication method is the one that is instrumental in answering your

D
tP

research question, and dealing with the constraints imposed by time, budget
ar
m

and human resources´. As the scope of the study involved international

.S
w

comparisons, it was not feasible to undertake personal interviews as far as the

w
w

Pakistani organisations were concerned. Therefore, telephonic interviews had

://
tp

to be conducted with them. The main research methods used were

ht

Ethnography, Structured interviewing, Questionnaires, Observation and

collection and analysis of the relevant documents. Direct participant observation
was used at the UK site, whereas this approach could not be employed for the
Pakistani organisations since the interviews conducted there were telephonic
om

om

interviews. Most of the interpretation was based on questionnaires, coupled with

.c

.c

formal, structured interviews with the concerned participants on the UK side,

or

or
at

at

i.e., the HRM managers. As mentioned earlier, due to the difficulty of travel, the
re

re
FC

FC

Pakistani organisations had to be interviewed over the phone, together with

D

questionnaires which were passed on to them through email. Through field-

tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 27

om

om
work and direct interaction in the UK, a more descriptive, in-depth and up-to-

.c

.c
or

or
date account was gained of the chosen area of study.

at

at
re

re
FC

FC
3.4 ETHNOGRAPHIC RESEARCH

D
tP

tP
According to Spradley (1979: 3), the goal of ethnographic research is "to
ar

ar
m

m
understand another way of life from the native point of view", and as such,
.S

.S
"rather than studying people, ethnography means learning from people". In this
w

w
w

w
w

w
sense, whatever findings were generated by the research, can prove to be a
://

://
tp

tp
step forward in learning from the culture with the more effective system of HR
ht

ht
and headcount reduction. Moreover, Ethnography is a most effective tool for
generating first-hand information.

3.5 PERSONAL SEMI-STRUCTURED INTERVIEWS

om
Personal interviews, semi-structured, allowed the researcher the opportunity to

.c
not only explore the topic in greater depth, but also to combine observation in
or
at
order to get the maximum amount of feedback possible from the interviewee.
re
FC

Although a personal interview is costly as far as both money and time are
D

concerned, its main advantage of securing a greater level of detail than any
tP
ar

other method far outweighs its limitations. According to Emory & Cooper (1995:
m
.S

271), ³interviewers can note conditions of the interview, probe with additional
w

questions, and gather supplemental information through observation.´ The main

w
w
://

tasks were the formulation of a set of relevant questions that were used at the
tp

interview sessions in both the countries (during personal interviews with the UK
ht

managers, and telephonic interviews with the Pakistani managers), enabling the
researcher to gain accurate information from the interviewees and use it to
compare and contrast the two scenarios. The researcher was able to probe for
further information, clear up any ambiguities in his mind, and also validate the
om

om

answers received on the questionnaire. In addition, the interview afforded the

.c

.c
or

or

researcher a fair amount of control by presenting him with the opportunity to

at

at
re

re

alter the course of the interview if the need arose. The semi-structured
FC

FC

approach to interviewing was selected as opposed to the open-ended

D

D
tP

tP

approach, as it gave the researcher the chance to steer the questions in roughly
ar

ar
m

the same direction for all the interviews, and to be able to better compare the
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 28

om

om
responses received from the different organisations. A structured interview was

.c

.c
or

or
not deemed appropriate, as a questionnaire was being used already. In

at

at
re

re
addition, a semi-structured style of interviewing allowed the researcher to ask

FC

FC
any questions that arose during the course of the interview itself. If, however, an

D
tP

tP
open-ended approach had been adopted, it would have become more difficult
ar

ar
m

m
and perplexing to compare all the interviews later on. In addition, as with any
.S

.S
qualitative research, the level of detail involved could make it more complicated
w

w
w

w
w

w
to generalize, thereby introducing variations. It was thus necessary to give the
://

://
tp

tp
interview some structure and format beforehand.
ht

ht
3.6 TELEPHONIC INTERVIEWS
As far as the Pakistani organisations are concerned, it was not possible for the
researcher to conduct personal interviews there, due to the constraints of both

om
time and budget. Not only would it have proved highly costly to travel to

.c
Pakistan, but the field-work and data collection itself would have proved to be
or
at
extremely time-consuming. In order to by-pass these disadvantages, the
re
FC

researcher chose to make use of the telephonic interview method. It proved to

D

be most suitable for the kind of research being conducted based on geographic
tP
ar

dispersion. It allowed the researcher the flexibility of expanded geographic

m
.S

research without incurring the associated travel costs and time limitations.
w

According to Saunders et al. (2007: 342), ³even where long distance access is
w
w
://

not an issue, conducting interviews by telephone may still offer advantages

tp

associated with speed of data collection and lower cost´. Another advantage of
ht

using telephonic interviews for Pakistani organisations was that no bias was
formed in the mind of the researcher, which could have happened had the
interview taken place in person, because of the marked difference in the
procedures and atmospheres of the two respective countries¶ organisations.
om

om

Similarly, as Cooper & Schindler (2003: 336) put it, ³when compared to personal
.c

.c
or

or

interviewing, it is also likely the interviewer bias ± especially bias caused by the
at

at
re

re

physical appearance, body language and actions of the interviewer ± is reduced

FC

FC

by using the telephone.´ The greatest advantage afforded by this medium to the
D

D
tP

tP

researcher was the significant reduction in the data collection costs as

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 29

om

om
compared with the personal interview, most of which were costs related to

.c

.c
or

or
travel.

at

at
re

re
FC

FC
3.7 QUESTIONNAIRES

D
tP

tP
Questionnaires were also found to serve a most useful purpose in the way they
ar

ar
m

m
could be so accurately compared and contrasted for all the concerned
.S

.S
organisations. They were certainly the least ambiguous method of
w

w
w

w
w

w
communication, and any ambiguities that did arise were cleared up during the
://

://
tp

tp
following interviews. The questionnaires contained multiple-choice type
ht

ht
questions, which were tested on a colleague before-hand, and were found to be
quite easy to complete and quite accurate in their purpose as a data collection
method. The questionnaires were emailed to all the concerned parties, and
were received back without any major delays or problems. They certainly

om
proved to be not only cost, bust also time-effective. The respondents were all

.c
able to fill them out at their own convenience, which allowed them to reply in
or
at
their own time and their own way. One other advantage of questionnaires is that
re
FC

they maintain a certain amount of anonymity, and hence the respondent feels
D

easier about answering the questions. Along with multiple-choice, the

tP
ar

questionnaires also included some open-ended questions, to which the

m
.S

respondents had the opportunity to reply in their own words. These questions
w

were necessary to generate theory that could not be answered effectively by the
w
w
://

multiple-choice questions, and to draw elaborations where needed.

tp
ht

3.8 OBSERVATION
Observation proved to be invaluable at the UK sites, and provided insight into
the unsaid things. It proved to be a useful tool to generate more specific
questions about some procedures that need to be clarified. As the approach to
om

om

the interview was semi-structured, if the researcher felt that by using

.c

.c
or

or

observation, any further issues arose that needed clarification, the researcher
at

at
re

re

was able to ask those questions and thus make the interviews even more
FC

FC

beneficial and accurate. However, the method of observation was limited to the
D

D
tP

tP

UK organisations where personal interviews could be held, and could not be

ar

ar
m

utilised with their Pakistani counterparts.

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 30

om

om
3.9 SUITABLITY OF CHOSEN TECHNIQUES FOR THE STUDY

.c

.c
or

or
The reason for opting for these methods is their suitability for the kind of work

at

at
re

re
the researcher is undertaking. Qualitative interviews proved invaluable in

FC

FC
generating the answers needed about the various processes and procedures,

D
tP

tP
and allowed me to effectively compare the two different cultures and their HRM
ar

ar
m

m
policies. Semi-Structured interviews, where both the UK and the Pakistani
.S

.S
counterparts were asked the same questions in order for a more solid
w

w
w

w
w

w
comparison, were used for the purpose of the study, although the Pakistani
://

://
tp

tp
counterparts had to be interviewed over the telephone, because of the difficulty
ht

ht
of travel and budget concerns. The limitations introduced by the selection of
four managers for the interviews were those of limiting the research to the
opinions of a few people. However, as the organisations chosen and the
managers interviewed were a generally representative sample of the whole, this

om
limitation did not in fact invalidate the research.

.c
or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 31

om

om
.c

.c
or

or
CHAPTER ± 4 ANALYSIS & FINDINGS

at

at
re

re
FC

FC
4.1 INTRODUCTION

D
tP

tP
The current research attempts to make a comparative analysis of the soft HRM
ar

ar
m

m
policies between UK and Pakistan. The analysis is based upon the method of
.S

.S
survey and interview. The questionnaire (Appendix A) allowed the researcher to
w

w
w

w
w

w
ask questions that can lead to the formulation of concrete judgements and offer
://

://
tp

tp
solid grounds for improvements in the organisations with the shortfalls. These
ht

ht
allow the researcher the opportunity to study the same perspective of soft HRM
from several different angles, and to be in a more informed position to compare
and contrast them, and hence offer suitable recommendations.

om
The survey is designed to capture the impact of soft HRM policies of United

.c
Kingdom and Pakistan in 35 different aspects. Four organizations are chosen
or
at
from the private sector of United Kingdom and Pakistan. Two well renowned
re
FC

organizations are selected from United Kingdom; T-mobile and DHL. The
D

organizations from Pakistan include two big names of the telecom sector,
tP
ar

Mobilink and Ufone. For the purpose of the research, we will take µpositive¶ to
m
.S

denote that the reply of the organization to the given question was in
w

accordance with Soft HRM, and we will take µnegative¶ to denote that the reply
w
w
://

of the organization showed a disregard for Soft HRM. T-mobile has replied
tp

positively to 31 questions for the application of soft HRM policies in their

ht

organization. The results are similar for DHL, which has also shown 31 positive
replies, which shows the implementation of soft HRM policies in their
organization. The results are different in the case of Pakistan, as Mobilink, one
of the big names in the telecom sector of Pakistan, has shown 17 positive and
om

om

18 negative results out of a total of 35 questions. This denotes the application of

.c

.c
or

or

hard HRM policies in their organization. Ufone has shown only 11 positive
at

at
re

re

replies out 35 and 24 negative results (Appendix B).

FC

FC
D

D
tP

tP

4.2 FINDINGS
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 32

om

om
Each of the 35 questions is discussed in detail below, together with the replies

.c

.c
or

or
received from all four concerned organisations.

at

at
re

re
FC

FC
QUESTION 1:

D
tP

tP
All four of the selected organisations agreed that they involve HR professionals
ar

ar
m

m
in the decision making process of redundancies. Full-involvement is present of
.S

.S
the HR professionals, which is a highly desirable and effective policy on the part
w

w
w

w
w

w
of the organisations. HR managers are a specialist workforce, and the process
://

://
tp

tp
of redundancy is such that it requires extreme care and sensitivity in handling
ht

ht
(CIPD, 2009). Furthermore, according to the CIPD (2009), ³The negative effects
can be reduced by sensitive handling of redundant employees and those
remaining.´ The HR professionals are best able to assist at such times. All four
organizations stated that they do believe in the involvement of HR professionals

om
in decision making process of redundancy to make the process smooth and

.c
transparent. or
at
re
FC

QUESTION 2 and 3:
D

Although the researcher was expecting that the UK organisations would all be
tP
ar

exercising a standing redundancy plan to resolve the issues related to the

m
.S

recession e.g. headcount reduction, if they find any need to do so, the fact of
w

the matter is that neither the UK organisations nor their Pakistani counterparts
w
w
://

have any such plan in place. The result for this part is found negative for all
tp

companies of UK and Pakistan. According to the CIPD (2009), ³it is preferable

ht

for an organization to establish a formal procedure on redundancy.´ However,

all four organizations did not have any standard formal procedure. The CIPD
(2009) states that ³Some organizations deal with redundancies by an informal
arrangement with a practice which varies for each redundancy or they may only
om

om

start to consider the appropriate procedure for the first time when a redundancy
.c

.c
or

or

situation arises.´ This is the method being subscribed to by all the concerned
at

at
re

re

companies. Since none of the four companies had a standing redundancy plan
FC

FC

in place, it follows that their answer to question 3 was also negative, and they
D

D
tP

tP

did not hold a list of employees they feel should be considered for redundancy.
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 33

om

om
QUESTION 4:

.c

.c
or

or
In reply to the question that whether the companies inform their employees

at

at
re

re
about their decision to consider redundancy, anticipating the possible financial

FC

FC
conditions likely to be encountered by the employees after their redundancy, T-

D
tP

tP
mobile has replied positively, as they do inform their employees that
ar

ar
m

m
redundancy is being considered by them, in order for the employees to be
.S

.S
better prepared about the circumstances they can face after becoming
w

w
w

w
w

w
redundant. It is a good approach in terms of soft HRM policies. It means that T-
://

://
tp

tp
mobile is appreciating the soft policies of HRM. While in the case of DHL (UK) it
ht

ht
is found that the results are discretionary, meaning that all depends upon the
several factors. In case of Pakistani companies the results are quiet opposite.
Companies in Pakistan have never informed the employees that they might
need to consider redundancy, and hence never bring awareness to the coming

om
financial crisis. In this case they are focusing upon the hard HRM policies. This

.c
we find to be in extreme contrast to the policies of mutuality emphasized by
or
at
most Human Resource experts, such as Legge in Armstrong (2003: 26), who
re
FC

states: ³human resources may be tapped most effectively by mutually

D

consistent policies that promote commitment´. Such a disregard of mutuality

tP
ar

displays the presence of µcompliance rather than commitment¶ (Burns in

m
.S

Armstrong, 2003: 333).

w
w
w
://

QUESTION 5:
tp

When asked that do companies maintain a healthy regular meeting system

ht

where employees discuss the possible adverse effects of financial crisis, the
results are found similar with the previous part as the companies in UK are
found dedicated and loyal to soft HRM policies, whereas the same hard HRM
policies are found in case of Pakistan, where no such meetings are held. This
om

om

strengthens our belief that Pakistani organisations treat their employees as

.c

.c
or

or

commodities rather than valued assets (Guest, 1999), and that the emphasis is
at

at
re

re

on the ³interests of the management´ rather than the employee (Armstrong,

FC

FC

2006: 14).
D

D
tP

tP
ar

ar
m

QUESTION 6:
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 34

om

om
Some important alternatives should be considered by all organisations before

.c

.c
or

or
resorting to redundancy, which can include reduced work hours, reduced pay,

at

at
re

re
unpaid leave, sabbatical and retraining (CIPD, 2009). These measures are part

FC

FC
of soft HRM policies, because they aim for less de-motivation and frustration

D
tP

tP
among employees. When asked about their consideration of such alternatives
ar

ar
m

m
before submitting to headcount reduction, the results for both UK companies
.S

.S
are found are found positive as both companies weigh such options. In the case
w

w
w

w
w

w
of Pakistan, Mobilink does consider most of these alternative strategies
://

://
tp

tp
whereas Ufone does not, signifying that Mobilink is more focused towards the
ht

ht
soft HRM policies than Ufone. In this case Ufone is found exercising hard HRM
policies because they are found more inflexible towards redundancies as
compared to Mobilink, and are not at all committed to minimising the need for
redundancies. According to the CIPD (2009), ³Organizations should always

om
attempt to avoid redundancies.´ By failing to do so, Ufone fails to consider the

.c
soft HRM policies when it comes to redundancy. or
at
re
FC

QUESTION 7:
D

It is observed that redundancies can be avoided if companies offer reduced

tP
ar

hours, reduced pay, unpaid leave, sabbatical, retraining (CIPD, 2009). When
m
.S

companies were asked whether chances of redundancy being implemented are

w

lessened after the consideration of other alternatives, the results are found
w
w
://

positive in case of UK organisations because both T-mobile and DHL believe

tp

that when other options are considered, redundancy does get reasonably
ht

lessened. Mobilink is also found in favour of these factors and does believe in
first using other options, which can eliminate the need for redundancy. Only one
company Ufone (Pakistan) is found against these measures as they are
following the hard HRM rules in their policy, and do not believe in considering
om

om

other alternatives, as we saw in the previous question. .

.c

.c
or

or
at

at
re

re

QUESTION 8:
FC

FC

Voluntary redundancy is one of the important aspects of soft HRM policies. It is

D

D
tP

tP

considered that organisations following soft HRM policies do offer voluntary

ar

ar
m

redundancy package to first identify those employees who are seeking and
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 35

om

om
willing to get redundancy offers. Both companies in United Kingdom have

.c

.c
or

or
shown that they do offer voluntary redundancies depending upon situation as

at

at
re

re
well as both companies Mobilink and Ufone in Pakistan have also shown that

FC

FC
they do offer voluntary redundancy. In this case UK and Pakistan both have

D
tP

tP
shown a positive trend so as to minimise the possibility of unwilling employees
ar

ar
m

m
getting redundant. This certainly has a good impact on the morale of the
.S

.S
employees, and prescribes to the practice of soft HRM, as according to Walton
w

w
w

w
w

w
(1985: 79), ³Policies of mutuality will elicit commitment, which in turn will yield
://

://
tp

tp
both better economic performance and greater human development.´
ht

ht
QUESTION 9:
Individual and collective consultation during the process of redundancy is
considered very important, especially for practicing soft values of HRM.

om
According to the CIPD (2009), ³Individual consultation is necessary for all

.c
redundancies and the law requires that collective consultation is required in
or
at
certain multiple redundancy situations.´ All companies, both from UK and
re
FC

Pakistan, have agreed that they do have the method of mutual individual and
D

collective consultation process in their organisation. In making a comparison,

tP
ar

both UK and Pakistan have agreed to follow soft HRM policies in this matter.
m
.S

This is the very essence of soft HRM, as pointed out by Legge in Armstrong
w

(2003: 26), that ³human resources may be tapped most effectively by mutually
w
w
://

consistent policies that promote commitment, and which, as a consequence,

tp

foster a willingness in employees to act flexibly in the interests of the

ht

organisations pursuit of excellence´.

QUESTION 10:
When carrying out consultations, factors that should be included are: reasons
om

om

for redundancy, why and how individuals have been selected for redundancies,
.c

.c
or

or

and also if some possible alternative work options that are offered by the
at

at
re

re

organisations (CIPD, 2009). When asked whether the companies include these
FC

FC

aspects in their consultations, it was found that the companies in UK have a

D

D
tP

tP

system of discussing these features in their consultations. In Pakistan, Mobilink

ar

ar
m

is found to have a positive reply, while Ufone has shown a rigid approach.
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 36

om

om
Ufone does not consider such factors in their consultations, which is highly

.c

.c
or

or
undesirable, and once again emphasizes their divergence from soft HRM.

at

at
re

re
According to Armstrong (2006: 154), the Redundancy policy of an organisation

FC

FC
should state that the organisation will use ³its best endeavours to avoid

D
tP

tP
involuntary redundancy and that in case such a step becomes necessary, as in
ar

ar
m

m
times of recession, the affected employees will be given µfair and equitable
.S

.S
treatment, the maximum amount of warning, and every help that can be
w

w
w

w
w

w
provided by the organisation to obtain suitable alternative work´.
://

://
tp

tp
ht

ht
QUESTION 11:
By law it is expected that the collective consultations should start 90 days
beforehand for redundancy dismissals of 100 or more employees and 30 days
before notifications of redundancies for 20-99 employees. In case of UK, it is

om
observed that companies do follow the soft rule as part of their application of

.c
policies and both companies such as T-mobile and DHL are found positive to
or
at
implement this. They do start their consultations well beforehand, as stated by
re
FC

the law. In Pakistan, however, no such rules are in place, and both the
D

companies hold consultations as and when deemed appropriate by them,

tP
ar

without subscribing to any pre-set timelines. This once again re-affirms their
m
.S

leaning towards hard HRM, and also the fact that employees are in a weaker
w

position as far as HRM is concerned. This practice is in complete tandem to soft

w
w
://

HRM, which µis an approach that acknowledges the importance of HRM to the
tp

aims of the business, whilst reflecting attempts by management to create a

ht

work environment that emphasises employee development, through practices

such as training, participation and communication, and the importance of having
innovative, flexible, committed employees who are valued resources¶ (Kane,
Crawford and Grant 1999: 496).
om

om
.c

.c
or

or

QUESTION 12:
at

at
re

re

According to the CIPD (2009), consultations ³must be completed before notice

FC

FC

of dismissal is given to any of the employees concerned.´ When enquired about

D

D
tP

tP

this procedure, it is revealed that UK companies are found to complete

ar

ar
m

collective consultation before notice of the dismissal given to concerned

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 37

om

om
employees. Both DHL and T-mobile have the same procedure, and they do

.c

.c
or

or
complete consultation before the redundancy of effected employees. As

at

at
re

re
opposed to this, in the case of Pakistan, Mobilink is found following this soft

FC

FC
policy of HRM, whereas Ufone is found to follow the hard HRM policy. Ufone

D
tP

tP
does not wait for the completion of consultations before issuing the notice of
ar

ar
m

m
dismissal to the concerned employees, which demonstrates their practice of
.S

.S
³tough love´ (Legge in Gratton, 1999: 127), and hard HRM, which according to
w

w
w

w
w

w
Legge in Armstrong (2000: 14) treats employees ³as a resource to be managed
://

://
tp

tp
in the same rational way as any other resource being exploited for maximum
ht

ht
return´.

QUESTION 14:
It is expected from organisations that before achieving the desired results of

om
redundancy, the organisations must identify the pools and pool wise individual

.c
employees earmarked for redundancy. According to the CIPD (2009), ³Unless
or
at
there is a customary arrangement, an employer should identify the group of
re
FC

employees at the planning stage that may be made redundant.´ The

D

organisations in UK are found to follow this procedure, and maintain a selection

tP
ar

pool of individuals earmarked for redundancy. In contrast to this, it is discovered

m
.S

that neither of the Pakistani organisations have any system of an initial selection
w

pool. According to the CIPD (2009), the initial pool will ³usually be those who
w
w
://

undertake a similar type of work in a particular department, or work at a relevant

tp

location, or whose work has either ceased or diminished, or is expected to do

ht

so.´ By failing to follow this procedure, the Pakistani organizations risk the loss
of employees unsuitable for redundancy and the retention of employees
suitable for reduction.
om

om

QUESTION 15:
.c

.c
or

or

It is also expected that before undertaking redundancy, when there is a choice

at

at
re

re

between employees, the following should be taken into observation i.e. length of
FC

FC

service, attendance records, disciplinary records, work experience and

D

D
tP

tP

performance records (CIPD, 2009). These criteria can help the organisations in
ar

ar
m

achieving best selections. When questioned about this policy, the results are
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 38

om

om
found to be positive for the UK organisations. DHL does take all these points

.c

.c
or

or
into consideration before undertaking the selection of employees for

at

at
re

re
redundancies. In the case of T-mobile another factor has also been added, i.e.

FC

FC
age difference. T-mobile does consider all these factors along with the factor of

D
tP

tP
age difference. The results are found satisfying in Pakistani organisations as
ar

ar
m

m
they also do consider these factors when a choice arises between two or more
.S

.S
employees for redundancy.
w

w
w

w
w

w
://

://
tp

tp
QUESTION 16 and 17:
ht

ht
According to the CIPD (2009), ³LIFO remains a risky method, and is usually an
unsatisfactory way of retaining the most competent.´ When the organizations
were questioned about their use of the LIFO method for employee selection, all
four had the same answer, and all four replied in the negative. None of the

om
companies are using the LIFO method for the selection of employees for

.c
redundancy. According to the CIPD (2009), ³Tribunals should look favorably on
or
at
selection procedures based on a points system which scores each employee
re
FC

against the relevant criteria´. The method of relative scoring is found in the UK
D

organisations. DHL and t-mobile both have shown that they apply on points
tP
ar

system whereas in Pakistan the results are different. Mobilink or Ufone both
m
.S

companies do not follow any points-based scoring system.

w
w
w
://

QUESTION 18:
tp

According to the CIPD (2009), ³great care must be taken in the choice and
ht

application of the criteria to avoid factors which may be discriminatory on any

grounds.´ The selection of criteria through which discrimination can be avoided
is a part of soft HRM rules. Discrimination in any form should be avoided to
make procedures transparent. It is seen that DHL and T-mobile in UK and
om

om

Mobilink and Ufone in Pakistan are struggling to achieve a discrimination-free

.c

.c
or

or

selection system, and agreed that they try to avoid discrimination in their
at

at
re

re

criteria. It is a positive sign in terms of employee motivation levels. Hence the

FC

FC

results are satisfying in both countries.

D

D
tP

tP
ar

ar
m

QUESTION 19:
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 39

om

om
In the survey, when asked whether the organisations give at least 90 days

.c

.c
or

or
written notification to BERR (Business Enterprise & Regulatory Reforms) if 100

at

at
re

re
or more employees are to be made redundant, and at least 30 days for 20 to 99

FC

FC
employees. UK organisations have shown that they do inform BERR when such

D
tP

tP
a situation arises. Whereas in Pakistani organisations the results are different,
ar

ar
m

m
as they do not have any policy to inform any regulatory body about their
.S

.S
dismissals and huge redundancy plans. There is no centralised body dealing
w

w
w

w
w

w
with redundancy issues and organisations only have themselves to answer to.
://

://
tp

tp
ht

ht
QUESTION 20:
Laws related to trade-unions, part-time status, pregnancy or maternity status,
marital status, disability, race or religion are expected to be taken into account
before the application of redundancy plans so as to avoid unfair dismissals. UK

om
organisations have shown positive results; conversely Pakistan has shown a

.c
rigid attitude in this regard. Neither Mobilink nor Ufone have any rules regarding
or
at
unfair dismissals. According to the CIPD (2009), ³A dismissal may also be a
re
FC

normal (i.e. not automatic) unfair dismissal if there is not a genuine redundancy
D

or if the selection criteria are too imprecise or subjective.´ The Pakistani

tP
ar

organizations display their disregard for soft HRM by failing to take into
m
.S

consideration any rules regarding unfair dismissals, once again fortifying our
w

belief that they consider employees to be costs rather than assets, as opposed
w
w
://

to Storey (2007: 9) who states that ³human resource ought to be nurtured as a

tp

valued asset, and not be regarded as an incidental cost´

ht

QUESTION 21:
Furthermore it was asked in the survey questionnaire that do organisations give
the opportunity to employees to appeal against their selection for redundancy.
om

om

The opportunity of appeal to the employees is always appreciated and is a part

.c

.c
or

or

of soft HRM policies. According to the CIPD (2009), ³Employees dismissed by

at

at
re

re

reason of redundancy must be given the opportunity to appeal their selection for
FC

FC

redundancy.´ The allowance of the right of appeal to redundant employees is

D

D
tP

tP

given by both the UK organisations i.e. T-mobile and DHL. On the other hand
ar

ar
m

the employees are not given this right in both of the Pakistani organisations i.e.
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 40

om

om
Mobilink and Ufone. Employees are not given any right of appeal against their

.c

.c
or

or
dismissal or if they are made redundant forcefully.

at

at
re

re
FC

FC
QUESTION 22:

D
tP

tP
When asked if the organisations have any policy of offering suitable alternative
ar

ar
m

m
work to the redundant employees within the organisation itself, it was
.S

.S
discovered that in the UK it is a norm that employees should be rotated or
w

w
w

w
w

w
offered suitable alternative work. Such policy is considered positive in UK and
://

://
tp

tp
also is a part of soft HRM policy. In both UK companies i.e. T-mobile and DHL,
ht

ht
it is found that employees are considered for suitable alternative work
throughout the organisation. However, in Pakistan the situation is entirely
different; it is seen that Mobilink and Ufone do not offer any alternative work to
their employees, which is in opposition to the CIPD (2009) statement that

om
³Employers must consider suitable alternative work and are expected to look for

.c
alternatives throughout the organization´. or
at
re
FC

QUESTION 23:
D

According to the CIPD (2009), ³The law requires employees be given paid time
tP
ar

off to look for work during the final notice period.´ Paid time off is found
m
.S

applicable in all the four organisations. UK and Pakistani organisations do offer

w

paid time off to their employees before the application of redundancy. Moreover
w
w
://

T-mobile (UK) also offers an outplacement service to their employees. So it is

tp

observed that as part of soft HRM policy paid time off is exercised in both UK
ht

and Pakistan.

QUESTION 24:
Some of the compulsory factors must be kept in mind before arriving at
om

om

headcount reduction such as job performance, disciplinary records, job role,

.c

.c
or

or

age, and responsibility level. It is observed that T-mobile (UK) consider job
at

at
re

re

performance and disciplinary record before arriving at headcount reduction

FC

FC

whereas DHL also consider job role. On the other hand Pakistan does not
D

D
tP

tP

consider these factors as compulsory.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 41

om

om
QUESTION 25 and 26:

.c

.c
or

or
The additional financial benefit given to the employees who are becoming a

at

at
re

re
victim of the redundancy plan is part of soft HRM policies. It is beneficial for the

FC

FC
employees to cope with the sudden financial crises encountered after their

D
tP

tP
dismissals. It has resulted from the survey that DHL, T-mobile and Mobilink
ar

ar
m

m
offer additional financial benefits to their employees whereas in Ufone they do
.S

.S
not offer any additional benefits to their employees in case of dismissals. The
w

w
w

w
w

w
CIPD (2009) states that ³Dismissed employees with two or more years¶ service
://

://
tp

tp
are entitled to a minimum redundancy payments based on a formula similar to
ht

ht
the basic award for unfair dismissal.´ By not complying with any such
compensation rules, Ufone displays its non-conformity to soft HRM.

QUSTION 27:

om
Informing employees that they are being made redundant requires skill and

.c
precision. According to the CIPD (2009), ³Giving notice is unpleasant and need
or
at
careful handling. Common faults include being brutally abrupt or too vague.´ In
re
FC

order to avoid such faults, managers in organisations are expected to be trained

D

to tackle situations like redundancies. UK organisations have agreed that they

tP
ar

do train their managers for such situations and in Pakistan Mobilink and Ufone
m
.S

have also established training sessions for their managers to deal with these
w

kinds of critical situations.

w
w
://
tp

QUESTION 28:
ht

The redundant employees are expected to know where they should head for
support and advice (CIPD, 2009). Both the organisations in the UK do inform
their employees about the future support centres. In Pakistani organisations the
results are found negative for both the organisations. This is completely devoid
om

om

of any touch of Soft HRM, which ensures that affected employees are given the
.c

.c
or

or

maximum support as ³they can be badly affected by redundancy and need

at

at
re

re

support to accept reality´ (CIPD, 2009). Furthermore, according to the CIPD

FC

FC

(2009), ³Redundancy is one of the most traumatic events an employee may

D

D
tP

tP

experience. Announcement of redundancies will invariably have an adverse

ar

ar
m

impact on morale, motivation and productivity. The negative effects can be

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 42

om

om
reduced by sensitive handling of redundant employees and those remaining.´

.c

.c
or

or
The Pakistani organizations, by detaching themselves from the sensitive

at

at
re

re
handling and support provision of effected employees, display their insensitive

FC

FC
treatment of these employees.

D
tP

tP
ar

ar
m

m
QUESTION 29:
.S

.S
According to the CIPD (2009), ³A well-designed redundancy program should
w

w
w

w
w

w
enable employees to refresh their interview skills, redraft CVs and reply
://

://
tp

tp
effectively to job advertisements.´ Such a step can prove vastly beneficial to the
ht

ht
redundant employees in restarting their careers. In this case it is found that both
the UK organisations do help their employees to enhance their interview skills
and redraft their CVs etc., but the results are dissimilar again in Pakistan. The
organisations do not have any such helpful measures in place for the

om
employees made redundant.

.c
or
at
QUESTION 30:
re
FC

When asked whether the organisations have any system of providing

D

counselling by specialist consultants or others, it was discovered that while DHL

tP
ar

does offer that to its employees, T-mobile has not got any such specialised
m
.S

consultancy for its employees. Similarly, in Pakistan, organisations do not

w

recruit any such specialised help for their employees. The provision of
w
w
://

counselling to the redundant employees not only makes it easier on them, but it
tp

also ³reassures those remaining that the organization is prepared to treat

ht

redundant employees well.´ (CIPD, 2009)

QUESTION 31:
³In any redundancy situation, the immediate priority is the fair and sensitive
om

om

treatment of employees who are losing their jobs´ (CIPD, 2009). When asked if
.c

.c
or

or

the redundant employees are subjected to fair and sensitive treatment, which
at

at
re

re

an important part of soft HRM is, both DHL and T-mobile ensured that they do
FC

FC

undertake fair treatment with their employees. The organisations in Pakistan

D

D
tP

tP

have also confirmed that they believe in the fair treatment with the employees.
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 43

om

om
QUESTION 32:

.c

.c
or

or
The organisations were asked whether they handle redundancies in a way that

at

at
re

re
minimizes the adverse impact both on those who lose their jobs and on the

FC

FC
µsurvivors¶. According to the CIPD (2009), ³the organization¶s ongoing

D
tP

tP
effectiveness in today¶s competitive market is largely dependent on the morale
ar

ar
m

m
of the survivors.´ All four organizations said that they do handle redundancies in
.S

.S
just such a manner, so as to have the least possible negative impact on both
w

w
w

w
w

w
the employees made redundant as well as the survivors. This is extremely
://

://
tp

tp
beneficial to the organisation itself, as ³A demoralized workforce, anxious about
ht

ht
job security and critical of the handling of the redundancies of colleagues, is not
likely to display commitment, enthusiasm and initiative´ (CIPD, 2009).

QUESTION 33:

om
In terms of redundancies, the organisations are expected to communicate and

.c
discuss the reasons, methods and procedures and plans of redundancies in a
or
at
very clear, effective and efficient manner. When asked if they implement
re
FC

communication strategies to ensure that everyone in the organization has the

D

correct information about the reasons for redundancies, DHL and T-mobile were
tP
ar

found to have very strong communication strategies in place. Whereas Mobilink

m
.S

has agreed that they do try to keep their employees updated with the situation
w

and also to discuss and communicate with them effectively, conversely Ufone
w
w
://

does not follow any such policy to communicate positively and effectively with
tp

its employees. This confirms the views of Khilji (2001), that employees are not
ht

encouraged to give feedback, neither is their feedback sought, and HR policies

are µformulated in isolation¶; all this leads to a low level of commitment in
employees, coupled with a sense of detachment from their workplace.
om

om

QUESTION 34:
.c

.c
or

or

The relationship between management and left over employees are sometimes
at

at
re

re

adversely affected because of redundancies. When the communication level

FC

FC

between employees and management is strong, there are rare chances of this
D

D
tP

tP

happening. However, sometimes due to lack of confidence between

ar

ar
m

management and employees, or by some other factors these relationships are

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 44

om

om
affected badly. It is observed that in DHL the relationships are not affected for

.c

.c
or

or
which the reason can be strong communication and bonds with the employees

at

at
re

re
whereas it is seen that in T-mobile relations are badly affected for a short period

FC

FC
of time, which is due to the lack of confidence in management among the

D
tP

tP
survivors. But that is not for the longer periods. The organisations in Pakistan
ar

ar
m

m
have reported no adverse effects on the relationship between management and
.S

.S
survivors. One reason for this can be attributed to the fact that in Pakistani
w

w
w

w
w

w
organisations, there is no strong relationship between management and
://

://
tp

tp
employees as it is. Most of these organisations ³suffer from a lack of
ht

ht
communication, a gap between managers promises and implementation of
policies and an inconsistency of HRM practices among employees and the
centralised structure of the organisation´ (Khilji in Budhwar & Debrah, 2004:
104).

om
.c
QUESTION 35: or
at
When asked whether the organisations conduct individual discussions with
re
FC

remaining key workers to reassure them of their importance and employment

D

prospects, the finding was that the organisations in UK do tend to have

tP
ar

discussions, meetings etc with their leftover employees. This tool is found
m
.S

helpful for their organisations health. On the contrary, none such method is
w

observed in Pakistan. The organisations there do not practice individual

w
w
://

discussions. According to Khilji (2001), employees are not encouraged to give

tp

feedback, neither is their feedback sought, and HR policies are µformulated in

ht

isolation¶; all this leads to a low level of commitment in employees, coupled with
a sense of detachment from their workplace.

QUESTION 38:
om

om

Some organisations do re-induct their laid-off employees. The survey shows

.c

.c
or

or

that DHL re-induct and prefer their laid-off employees. T-mobile focuses upon
at

at
re

re

the situation and does not necessarily promise such commitment. The
FC

FC

organisations in Pakistan do not confirm any such commitment to re-employee

D

D
tP

tP

their laid-off employees.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 45

om

om
The analysis leads the researcher to gather concrete data about each of the

.c

.c
or

or
four companies, and their incorporation of the soft HRM policies with regard to

at

at
re

re
Redundancy handling. The organisations from UK, namely T-Mobile and DHL

FC

FC
follow soft HRM policies quite diligently. With the exception of a couple of

D
tP

tP
policies, they have answered positively to all the questions asked of them,
ar

ar
m

m
showing their adherence to soft HRM. Totally opposed to this are the replies
.S

.S
obtained from the Pakistani organisations, namely Mobilink and Ufone. These
w

w
w

w
w

w
organisations have displayed almost complete disregard of soft HRM.
://

://
tp

tp
ht

ht
4.3 DISCUSSION
This section of the research includes a detailed discussion of the findings
generated by the analysis. The researcher feels that the organisations from
Pakistan have displayed results that vary quite significantly from those of their

om
counterparts in the UK, with regards to their policies of soft HRM and

.c
Redundancies. or
at
re
FC

Although all four organisations are in complete agreement about involving HR

D

professionals in their Redundancy handling, which displays professionalism and

tP
ar

adherence to soft HRM on their part, at the same time all four do not have in
m
.S

place a standing redundancy plan in place, which is a negative attribute. Neither

w

have any of the companies got a list of the possible employees to be made
w
w
://

redundant. It is also discovered through the analysis that T-mobile has a policy
tp

to inform employees before considering Redundancy, while DHL exercises a

ht

discretionary policy; however the Pakistani organisations do not have any such
policy whatsoever. Following from this question, the Pakistani companies
replied in the negative again when asked about their policy of holding regular
meetings for employees to be able to discuss the possible unpleasant effects of
om

om

Reduction.
.c

.c
or

or
at

at
re

re

When the companies were asked whether they implement redundancies only as
FC

FC

a last resort, the UK organisations indeed replied in the positive, as did

D

D
tP

tP

Mobilink. Ufone, however, admitted to not considering any alternatives to

ar

ar
m

redundancy. It follows from this that all three organisations, i.e., T-Mobile, DHL
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 46

om

om
and Mobilink believe redundancy to be minimised after considering the afore-

.c

.c
or

or
mentioned alternatives. Since Ufone does not consider alternatives as a policy,

at

at
re

re
it did not believe that alternatives eliminated the need for redundancy. In

FC

FC
addition to the UK organisations, both the Pakistani organisations also claimed

D
tP

tP
to offer voluntary redundancy to employees, displaying a regard for soft HRM in
ar

ar
m

m
this matter. All four organisations once again were unanimous in holding
.S

.S
individual as well as collective consultations prior to redundancy. However,
w

w
w

w
w

w
when asked whether the organisations had any policy of including such factors
://

://
tp

tp
in the consultations as the reasons for redundancy, why and how individuals
ht

ht
have been selected for redundancies, and also if some possible alternative
work options that are offered by the organisations, all organisations answered in
the positive with the sole exception of Ufone which discredited the possibility.

om
We can see that the Pakistani organisations have failed to follow soft HRM to a

.c
great extent, as soft HRM µwhile still emphasizing the importance of integrating
or
at
HR policy with business objectives, sees this as involving treating employees as
re
FC

valued, a source of commitment, adaptability and high quality¶ (Guest & Legge
D

in Ackroyd et al, 2006: 224). The Pakistani organisations do not seem to be

tP
ar

displaying such characteristics.

m
.S
w

Although in the UK, companies follow a law that collective consultations should
w
w
://

start 90 days beforehand for redundancy dismissals of 100 or more employees

tp

and 30 days before notifications of redundancies for 20-99 employees, there is

ht

sadly no such law in place in Pakistan for companies to follow. Therefore,

neither Mobilink nor Ufone have any such policy of subscribing to any time-lines
when it comes to consultations. It is also revealed that although all three
companies, i.e., T-Mobile, DHL and Mobilink complete their consultations before
om

om

issuing notice of dismissal to employees, Ufone does not wait for consultations
.c

.c
or

or

to be finished.
at

at
re

re
FC

FC

None of the Pakistani organisations have in place a system of identifying the

D

D
tP

tP

pools and pool wise individual employees earmarked for redundancy. They do,
ar

ar
m

however, consider such factors the length of service, attendance records,

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 47

om

om
disciplinary records, work experience and performance records when there is a

.c

.c
or

or
choice between employees, as do the UK organisations. Although it is a good

at

at
re

re
sign that all four organisations don¶t employ LIFO as a selection method, it is a

FC

FC
negative point that the Pakistani organisations do not have any points-based

D
tP

tP
system of selection in place either. Even though the Pakistani organisations do
ar

ar
m

m
not employ a points-based scoring system, they still admitted to taking care to
.S

.S
avoid any discrimination in the selection process, as did the UK organisations.
w

w
w

w
w

w
://

://
tp

tp
In the UK, according to Department for Business Innovation & Skills (BIS), the
ht

ht
organisations do give at least 90 days written notification to BERR (Business
Enterprise & Regulatory Reforms) if 100 or more employees are to be made
redundant, and at least 30 days for 20 to 99 employees. In Pakistan, however,
due to the non-existence of any such law, the organisations do not have to

om
inform any regulatory body. Therefore, both organisations answered in the

.c
negative. While laws related to unfair dismissals, such as trade-unions, part-
or
at
time status, pregnancy or maternity status, marital status, disability, race or
re
FC

religion are taken into account before the application of redundancy plans in the
D

UK, the Pakistani organisations once again had no such laws in place, and both
tP
ar

organisations answered in the negative. While the UK organisations consider

m
.S

factors such as job performance, disciplinary records, job role, age, and
w

responsibility level before redundancy decisions, the Pakistani organisations do

w
w
://

not follow any such policy.

tp
ht

In the UK, the right of appeal is given to all employees selected for redundancy,
whereas no such right is given to the employees from the Pakistani
organisations. Similarly, while there is a policy of offering suitable alternative
work to effected employees in the UK, there is no such policy being practiced in
om

om

the Pakistani organisations. As opposed to this disregard of soft HRM by

.c

.c
or

or

Pakistani organisations, they do have a policy of offering paid time off to the
at

at
re

re

effected employees to search for work, as do the UK organisations. Following

FC

FC

on from this point, while additional financial benefits are offered to employees
D

D
tP

tP

by T-Mobile, DHL and Mobilink, no such additional benefits are offered by

ar

ar
m

Ufone to its employees.

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 48

om

om
.c

.c
or

or
On one hand, the Pakistani organisations, in tandem with the UK organisations

at

at
re

re
admitted to training their managers to deal with the unpleasant task of informing

FC

FC
employees about their redundancy; on the other hand, they fail to advise the

D
tP

tP
effected employees about where to go for further help and support. There are
ar

ar
m

m
no advice or support centres where the redundant employees can go for help,
.S

.S
whereas the UK organisations do offer these services. In the same way,
w

w
w

w
w

w
although the UK organisations do have a system of helping the redundant
://

://
tp

tp
employees refresh their interview skills, redraft their CVs and reply effectively to
ht

ht
job advertisements, there are no such helpful policies in place in the Pakistani
organizations. Specialized consultancy for the redundant employees is only
offered by DHL, and the rest of the organizations do not have any such
specialist consultants.

om
.c
All four organizations claim to handle redundancies fairly and sensitively, as
or
at
well as in a way that minimizes the adverse impact both on those who lose their
re
FC

jobs and on the survivors. The organisations from the UK have implemented
D

communication strategies to ensure that everyone in the organization has the

tP
ar

correct information about the reasons for redundancies; and while Mobilink did
m
.S

say that it placed importance on such communication strategies, Ufone replied

w

in the negative. Following on, DHL claimed that the relationship between the
w
w
://

managers and the remaining employees were not adversely affected, possibly
tp

because of such communication strategies, and T-Mobile claimed that the

ht

relationship was only affected for a short period, Mobilink and Ufone claimed
that it was not adversely affected at all. Here, we can assume that since the
relationship is not strong enough as it is, rather it is one of employee
subjugation, the chances of it being badly affected is small. Similarly, while the
om

om

UK organisations do hold discussions with the remaining workers, the Pakistani

.c

.c
or

or

organisations do not, once again displaying their unconcern for their employee¶s
at

at
re

re

well-being. Mutuality is an important aspect of soft HRM, which is completely

FC

FC

disregarded by the Pakistani organisation. Walton in Legge (1995: 64) states

D

D
tP

tP

that: HRM policies ³promote mutuality ± mutual goals, mutual influence, mutual
ar

ar
m

respect, mutual rewards and mutual responsibility¶. He goes on to say that

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 49

om

om
µpolicies of mutuality will elicit commitment, which in turn will yield both better

.c

.c
or

or
economic performance and greater human development´. There is also no

at

at
re

re
policy whereby the Pakistani organisations re-induct the redundant employees.

FC

FC
As opposed to this, the UK organisations both have such policies, with T-mobile

D
tP

tP
saying that it is discretionary.
ar

ar
m

m
.S

.S
All this leads us to believe that the Pakistani organisations place the employees
w

w
w

w
w

w
in a secondary position, and their organisations first. Thus they are in effect
://

://
tp

tp
pursuing Hard HRM policies, whereby, according to Legge in Armstrong (2006:
ht

ht
12), hard HRM treats employees ³as a resource to be managed in the same
rational way as any other resource being exploited for maximum return´.

om
.c
or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 50

om

om
.c

.c
or

or
CHAPTER ± 5 CONCLUSION

at

at
re

re
In attempting to compare and contrast the standard of soft HRM being applied

FC

FC
across cross-continental organisations, the researcher uncovered several

D
tP

tP
shortcomings in the way organisations in Pakistan implement soft HRM policies
ar

ar
m

m
in their Redundancy plans. The study allowed the researcher to offer several
.S

.S
recommendations to the Pakistani organisations, by applying which the
w

w
w

w
w

w
organisations can bring their soft HRM policies up to date with UK
://

://
tp

tp
organisations. These recommendations have been made keeping in mind the
ht

ht
standards set by the UK organisations, and treating those standards as
benchmarks for performance.

The researcher also feels it would be beneficial to prioritise the

om
recommendations presented, so as to allow the study to be more practically

.c
adaptable to the Pakistani organisations. The Pakistani organisations should
or
at
start by placing more focus on the policy of mutuality between the management
re
FC

and the employees. The research has uncovered that the more involved the
D

employees are with the decision-making of an organisation, the more motivated

tP
ar

they become, and the more productive they become. For instance, according to
m
.S

the study, the UK organisations do inform their employees before considering a

w

decision to implement redundancy, making them aware about the impending

w
w
://

financial crisis; whereas in Pakistan no such step is taken by the management.

tp

Therefore, the first step management should take is to foster more confidence
ht

among the employees by making them more aware about the goings-on of the
organisation, and seeking their feedback more often, thus infusing a tone of soft
HRM throughout the organisation. Once a culture of mutuality and trust has
been established throughout the organisations, the employees would be more
om

om

willing to be understanding of any decisions taken by the management,

.c

.c
or

or

especially if those decisions have been made after seeking the employees¶
at

at
re

re

feedback.
FC

FC
D

D
tP

tP

Secondly, the organisations should promote sensitive and fair treatment of all
ar

ar
m

employees in general and employees affected by redundancy in particular. This

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 51

om

om
can be done by appointing specialist staff for consultations, providing a channel

.c

.c
or

or
for the support and advice of all affected employees, guiding employees about

at

at
re

re
their future course of action and helping them re-enter their professional lives by

FC

FC
re-drafting their CVs and discussing future employment options. Not only will

D
tP

tP
this prove of immense value to the affected employees, but would also display a
ar

ar
m

m
positive message to the remaining employees; that the organisation cares about
.S

.S
their future and would not let leave them in the lurch if such a time was to come
w

w
w

w
w

w
to them. Again, such an action would be incorporating soft HRM policies, and
://

://
tp

tp
would not only make the employees happier, but would inevitable increase their
ht

ht
levels of loyalty and motivation towards their organisation. Similarly, the levels
of communication between the employees and management should be
regularised, and should look to include all important aspects the organisation
might be facing in the future, such as redundancies. If communication is strong,

om
one can observe a positive impact on the motivation level of surviving

.c
employees. Regular meetings with employees increase the sense of ownership;
or
at
the employees feel owned and informed. The organisations in the UK do follow
re
FC

this while in Pakistan it is not in practice. If organisations in Pakistan try to

D

arrange meetings and boost communication with their employees, this can help
tP
ar

the organisation to increase the capabilities of their employees as well as

m
.S

enhance the application of soft HRM policies.

w
w
w
://

Next, the Pakistani organisations should work on considering the various

tp

available alternatives to redundancy, such as offering reduced hours, reduced

ht

pay, unpaid leave, sabbatical and retraining their employees. Not only would
this step take them closer to implementing soft HRM policies in their
organisations, but would also ensure employee retention and loyalty. If the
organisations in Pakistan try to offer these options to their employees before
om

om

bluntly dismissing them, this can help the organisation to sustain the morale of
.c

.c
or

or

all employees. Some voluntary redundancy packages should also be introduced

at

at
re

re

in order to sift out those employees who are more willing to be made redundant,
FC

FC

and to avoid making those employees redundant who do not wish to be so.
D

D
tP

tP

Individual as well as collective consultations are a must for all organisations. All
ar

ar
m

concerned and effected employees should be informed well before time.

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 52

om

om
Minutes of meeting and records should be maintained for all these proceedings

.c

.c
or

or
as part of soft HRM policies. Similarly, pools should be developed from which

at

at
re

re
employees should be selected for redundancies. The organisations in UK are

FC

FC
found well familiar with the different pools and pool wise individuals embarked

D
tP

tP
for redundancy. These organisations do consider the factors like length of
ar

ar
m

m
service, attendance records, disciplinary records, skills competencies and
.S

.S
qualifications, work experience and performance records before designing their
w

w
w

w
w

w
redundancy decisions. In the same way, Pakistani organisations should also
://

://
tp

tp
develop a Points-based scoring system in which relative scoring criteria are
ht

ht
observed, and discrimination in any way is avoided. In addition, no such
centralised regulatory body is present in Pakistan to which all organisations are
accountable, and to which they have to give written notification before making
redundancies. Such bodies need to be set up in order to safeguard the interests

om
of the employees. To apply soft HRM policies, Pakistan needs to have well

.c
defined rules, regulations and policies in favour of employees as well as
or
at
organisations; otherwise the efficiency level of both the employees and the
re
FC

organisations will keep on decreasing.

D
tP
ar

Once all these steps have been ensured by Pakistani organisations, only then
m
.S

can they hope to compete with the standards set by the UK organisations as far
w

as soft HRM is concerned. This study opens up the possibility of further

w
w
://

research to identify the flaws in the system that prevent or impede the
tp

application of soft HRM policies in organisations. These flaws can consider

ht

factors such as the government, the social setup, the economic conditions, etc.
also, this study will prove to be an invaluable addition to the very limited
literature on the HRM currently being practiced in Pakistan.
om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 53

om

om
.c

.c
or

or
CHAPTER ± 6 RECOMMENDATIONS

at

at
re

re
The research analysis has led the researcher to compare and contrast various

FC

FC
soft HRM policies, particularly in relevance to Redundancy, between the

D
tP

tP
selected UK and Pakistani organisations. The results have led the researcher to
ar

ar
m

m
believe that although such policies are being utilised and practiced to a great
.S

.S
extent as far as the UK organisations are concerned, quite a bit appears to be
w

w
w

w
w

w
lacking as far as their Pakistani counterparts are concerned. Out of a total of 35
://

://
tp

tp
questions relating to soft HRM and Headcount Reduction asked of the four
ht

ht
companies, i.e. T-Mobile and DHL from the UK and Mobilink and Ufone from
Pakistan, the companies replied positively and negatively (where positive
denotes compliance with HRM soft policies in Headcount reduction, and
Negative implies non-conformity with such policies) as follows:

om
.c
POSITIVE or NEGATIVE
at
T-MOBILE 32 3
re
FC

DHL 32 3
D

MOBILINK 18 17
tP
ar

UFONE 11 24
m
.S
w
w
w
://

Hence it is clear that the Pakistani organisations are lacking in most aspects of
tp
ht

soft HRM. As part of the Research, it was intended that certain

recommendations be provided to Pakistani organisations in order for them to
catch up with the Western standards of soft HRM. The researcher feels that the
Pakistani organisations need to focus on the following aspects of soft HRM:
om

om

• The Pakistani organisations should make it a policy to inform their

.c

.c
or

or

employees that Redundancy might be under consideration by the

at

at
re

re

organisation, in order for the employees to be aware of the grim financial

FC

FC

situation ahead. This concerns the µpolicies of mutuality¶ so emphasized

D

D
tP

tP

upon by all leading experts of soft HRM.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 54

om

om
• A regular meeting system should be reinstated in the Pakistani

.c

.c
or

or
organisations where can employees discuss the possible adverse effects

at

at
re

re
of financial crisis, in order to further strengthen the company¶s policies of

FC

FC
mutuality.

D
tP

tP
• Although Mobilibk did say that it considers alternatives to Redundancy,
ar

ar
m

m
Ufone replied negatively, and hence the researcher deems it appropriate
.S

.S
w

w
to recommend that Pakistani organisations should consider at least the
w

w
w

w
common alternatives to redundancy that are considered in the west, such
://

://
tp

tp
as reduced work hours, reduced pay, unpaid leave, sabbatical and
ht

ht
retraining before resorting to reduction.
• The researcher recommends that when Consultations are carried out
prior to redundancy, the Pakistani organisations should include such
topics as reasons for redundancy, why and how individuals have been

om
selected for redundancies, and also if some possible alternative work

.c
options that are offered by the organisations. or
at
• In the UK, a law is in place that collective consultations should start 90
re
FC

days beforehand for redundancy dismissals of 100 or more employees

D

and 30 days before notifications of redundancies for 20-99 employees,

tP
ar

and this law is observed by the UK organisations included in the

m
.S

research. The researcher recommends that such laws should be put in

w
w

place for Pakistani organisations as well so that they are more

w
://

accountable for their actions.

tp
ht

• Furthermore all Pakistani organisations are advised to wait for the

completion of consultations before issuing the notice of dismissal to the
concerned employees, as this is the rule generally followed in the West,
and it subscribes to the soft policies of HRM.
• The researcher recommends that the Pakistani organisations must
om

om

identify the pools and pool wise individual employees earmarked for
.c

.c
or

or

redundancy, before achieving the desired results of redundancy.

at

at
re

re

• In addition, the researcher feels that the Pakistani organisations must

FC

FC

develop a points system which scores each employee against the

D

D
tP

tP

relevant criteria. The method of relative scoring is found in the UK

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 55

om

om
organisations, and should be adopted by the Pakistani organisations in

.c

.c
or

or
order to adhere to soft HRM.

at

at
re

re
• An important recommendation for the Pakistani organisations is the

FC

FC
setting up of a regulatory body, such as the BERR in the UK. At present

D
tP

tP
they do not have any policy to inform any regulatory body about their
ar

ar
m

m
dismissals and huge redundancy plans. A centralised body should be set
.S

.S
w

w
up to which all organisations can be accountable when it comes to
w

w
w

w
redundancy.
://

://
tp

tp
• The researcher feels that Pakistani organisations must take into account
ht

ht
laws relating to trade-unions, part-time status, pregnancy or maternity
status, marital status, disability, race or religion before the application of
redundancy plans so as to avoid unfair dismissals.
• Pakistani organisations must give the opportunity to employees to appeal

om
against their selection for redundancy. At present Employees are not

.c
given any right of appeal against their dismissal or if they are made
or
at
redundant forcefully.
re
FC

• Furthermore it is recommended by the researcher that Pakistani

D

organisations must introduce a policy of offering suitable alternative work

tP
ar

to the redundant employees within the organisation itself, as is seen to

m
.S

be done in the West.

w
w

• In addition, some compulsory factors must be kept in mind by the

w
://

Pakistani organisations before arriving at headcount reduction. These

tp
ht

factors can include job performance, disciplinary records, job role, age,
and responsibility level.
• It is recommended that Pakistani organisations should make it a policy to
give additional financial benefit to the employees who are becoming a
victim of the redundancy plan; as such an approach is part of soft HRM
om

om

policies being exercised in the UK.

.c

.c
or

or

• The Pakistani organisations should introduce support centres for affected

at

at
re

re

employees so that the redundant employees know where they should

FC

FC

head for support and advice.

D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 56

om

om
• The researcher recommends that the Pakistani organisations should

.c

.c
or

or
have helpful measures in place for the employees made redundant,

at

at
re

re
which include the opportunity for employees to refresh their interview

FC

FC
skills, redraft CVs and reply effectively to job advertisements.

D
tP

tP
• Furthermore, the Pakistani organisations must have a system of
ar

ar
m

m
providing counselling by specialist consultants or others, for the sensitive
.S

.S
w

w
treatment of those who undergo reduction.
w

w
w

w
• Pakistani organisations must improve the communication channels
://

://
tp

tp
between managers and employees, and must communicate and discuss
ht

ht
the reasons, methods and procedures and plans of redundancies in a
very clear, effective and efficient manner.
• Pakistani organisations must conduct individual discussions with
remaining key workers to reassure them of their importance and

om
employment prospects.

.c
• In addition, Pakistani organisations should introduce a policy to re-induct
or
at
their laid-off employees.
re
FC
D

To sum up, a major reformation of the HRM policies being practiced in Pakistan
tP
ar

needs to take place, with a priority to be given to the introduction of soft HRM
m
.S

policies particularly in relation to Headcount reduction, as is being practiced by

w
w

the UK organisations. Rights of employees, and not just the good of the
w
://

organisation, should be kept in mind. Rigid and hard policies that are totally
tp
ht

devoid of all traces of soft HRM should be avoided. The policies in the UK
should be treated as a benchmark, and new policies should be made keeping
this benchmark in mind. Not only can this enable the Pakistani organisations to
maintain a high level of loyalty and motivation level among their employees, but
also to improve their overall productivity, as a motivated and satisfied workforce
om

om

is bound to be an asset to any organisation.

.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 57

om

om
.c

.c
SELF REFLECTION

or

or
at

at
re

re
When reflecting on the process of writing my dissertation, I am inclined to say

FC

FC
that I have gained invaluably from this experience, not just as a researcher, but

D
tP

tP
as a prospective member of any such organisation that I have had the
ar

ar
m

m
opportunity to include in my research. To start with, my interest in the topic
.S

.S
arose when I came to the UK to study, and was quite taken aback by the vast
w

w
w

w
w

w
amount of emphasis placed on the soft side of HRM in almost all organisations I
://

://
tp

tp
came into contact with; which was a new phenomenon for me, coming from a
ht

ht
country where employees were treated with a hard hand as a norm. I therefore
welcomed the opportunity to study this phenomenon in greater depth, whereby
enhancing my knowledge of how the developed world differs from the third
world countries in this respect.

om
.c
The amount of practical research I undertook in order to be better informed
or
at
about the topic of study was invaluable, as I came into contact with
re
FC

professionals from some of the most well-known organisations of both the UK

D

and Pakistan, and was able to not only ask them questions, but also to observe
tP
ar

them conducting their work. The theoretical study involved, on the other hand,
m
.S

has been extremely beneficial in grounding me thoroughly about soft HRM and
w

its policies, as well as the perspectives of leading experts in the field. Such
w
w
://

knowledge enabled me to link the findings of my practical study with the

tp

theoretical framework of soft HRM and Redundancy to give the research more
ht

credibility.

Although the process of learning is never-ending, I can claim with confidence

that through this opportunity of writing my dissertation, not only did I gain the
om

om

research skills and experiences I was looking to gain, and gather a sound and
.c

.c
or

or

deep understanding of the theory of soft HRM, I also accumulated quite a lot of
at

at
re

re

useful techniques and ideas that I can utilise once I join the HR industry as a
FC

FC

professional, especially in Pakistan, where almost all organisations have room

D

D
tP

tP

for incorporating the recommendations I have made as an outcome of my

ar

ar
m

research.
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 58

om

om
.c

.c
or

or
REFERENCES

at

at
re

re
Ackroyd, S., Batt, R., Thompson, P. & Tolbert, P.S. (2006) The Oxford

FC

FC
Handbook of Work & Organisation. 2nd edn. New York: Oxford University Press.

D
tP

tP
ar

ar
Aftab, F. (2007). An exploratory studies of HRD: A study focusing on the
m

m
organisations of Islamabad, Rawalpindi and Wah Region in Pakistan.
.S

.S
International review of Business Research papers 3, no. 3: pp. 36-55.
w

w
w

w
w

w
Armstrong, M. (2000) Strategic Human Resource Management: A Guide to
://

://
Action. 2nd edn. London: Kogan Page Publishers
tp

tp
ht

ht
Armstrong, M. (2003) A Handbook of Human Resource Management Practice.
(9th edn). London: Kogan Page Publishers.

Armstrong, M. (2006) A Handbook of Human Resource Management Practice.

(10th edn). London: Kogan Page Publishers.

om
Barnham, K. Fraser, J. and Heath, L. (1988) Management for the Future,
Ashridge Management Research Group and the Foundation for Management

.c
Education. or
at
re

Beer, M., Walton, R., & Spector, B., (1984). Managing Human Assets. New
FC

York: Free Press.

D
tP

BIS. (2009). Redundancy Consultation & Notification: Guidance. [online]

ar

Available at: http://www.berr.gov.uk/whatwedo/employment/employment-

m
.S

legislation/employment-guidance/page13852.html. [Accessed: 25 July, 2009].

w
w

Budhwani, N. (2008): The role of HRD in Pakistan: An overview.

w
://
tp

Budhwar, P.S. & Debrah, Y.A. (2004) Human Resource Management in

ht

Developing Countries. UK: Routledge.

CIPD. (2009). Redundancy. [Online] Available at:

http://www.cipd.co.uk/subjects/emplaw/redundancy/redundancy.htm.
[Accessed: 21 July, 2009].

Clark, H., Chandler, J. & Barry, J. (1994) Organizations and Identities: Text and
om

om

Readings in Organizational Behaviour. London: Cengage Learning EMEA.

.c

.c
or

or

Cooper, D.R. & Schindler, P.S. (2003) Business Research Methods. 8th edn.
at

at
re

re

Pennsylvania: McGraw-Hill Irwin.

FC

FC

Cooper, D.R. & Schindler, P.S. (2005) Business Research Methods. 9th edn.
D

D
tP

tP

Pennsylvania: McGraw-Hill Irwin.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 59

om

om
Cornelius, N. (2001) Human Resource Management: A Managerial Perspective.

.c

.c
2nd edn. London: Thompson Learning EMEA.

or

or
at

at
re

re
Debrah, Y.A., Smith, I.G. (2000), "Introduction: globalization and the changing

FC

FC
patterns of employment", International Journal of Manpower, Vol. 21 No.6,

D
pp.446-51.
tP

tP
ar

ar
Emory, W. & Cooper, D.R. (1995) Business Research Methods. 5th edn.
m

m
California: Irwin.
.S

.S
w

w
w

w
Grant, R.M. (1991), "The resource-based theory of competitive advantage:
w

w
implications for strategy formulation", California Management Review,, Vol. 33
://

://
tp

tp
pp.114-35.
ht

ht
Gratton, L. (1999) Strategic human resource management: corporate rhetoric
and human reality. New York: Oxford University Press.

Guest, D., 1987. Human Resource Management and Industrial Relations.

Journal of Management Studies. 24(5) pp. 503- 521.

om
Guest, D.E. (1999), "Human resource management ± the workers' verdict",

.c
Human Resource Management Journal, Vol. 9 No.3, pp.5-26. or
at
Hisrich, R.D. (2009) International Entrepreneurship: Starting, Developing, and
re
FC

Managing a Global Venture. London: SAGE.

D
tP

Hussain, I. (1999) µDemocracy in Doldrums¶, Dawn Karachi. [online] Available

ar

at: http://www.dawn.com/weekly/mazdak/991016.htm. [Accessed: 30 July,

m

2009].
.S
w

Hyman, J., & Mason, B., (1995). Managing Employee Involvement and
w
w

Participation. London: Sage publishers.

://
tp

IBCN. (2005). How do Hofstede's Dimensions correlate with the World's

ht

Religions? [online] Available at:

http://www.internationalbusinesscenter.org/international_newsletter/volume2_is
sue1.htm. [Accessed: 27 July, 2009].

Kane, B., Crawford, J., Grant, D. (1999), "Barriers to effective HRM".

International Journal of Manpower. 20(8). pp.494-515.
om

om
.c

.c

Kearns, P. (2005) Evaluating the ROI from Learning: How to develop value-
or

or

based training. UK: CIPD.

at

at

Khilji, S.E. (1995) µInternational Human Resource Management in Pakistan¶,

re

re
FC

FC

Un-published M-Phil Thesis. University of Cambridge.

D

D
tP

tP

Khilji, S.E. (1999) µAn Empirical Study of HRM in Pakistan¶, unpublished PhD
ar

ar

thesis, University of Cambridge.

m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 60

om

om
.c

.c
Khilji, S.E. (2001) Human resource management in Pakistan. In Budhwar, P.

or

or
at

at
and Debrah, Y.A. (Eds.) Human resource management in developing countries

re

re
London: Routledge.

FC

FC
D

D
Kohn, T.O. & Austin, J.E. (1990). Strategic Management in Developing
tP

tP
Countries. New York: Free Press.
ar

ar
m

m
Legge, K., (1995). Human Resource Management: Rhetorics and Realities.
.S

.S
Basingstoke: Macmillan.
w

w
w

w
w

w
Legge, K. (1998), "The morality of HRM", in Mabey, C., Skinner, D., Clark, T.
://

://
tp

tp
(Eds),Experiencing Human Resource Management, Sage, London.
ht

ht
Legge, K., (2005). µHuman Resource Management: Rhetorics and Realities¶.
(10th anniversary edn). Basingstoke: Palgrave Macmillan.

Mabey, C., Salaman, G. & Storey, J. (1998) Human Resource Management: A

Strategic Introduction. 2nd edn. Oxford: Wiley-Blackwell.

om
Mahmood, S., (2006). Good Governance Reforms Agenda in Pakistan: Current

.c
Challenges. New York: Nova Publishers. or
at
McLean, G.N., Kuo, M.H., Budhwani, N. & Yamnill, S. (2006). In Poell, R.F. (Ed)
re
FC

Seventh International Conference on HRD Research & Practice Across Europe,

held in Tilbury, Netherlans, 22-24 may. Tilburg, Netherlands: Tilburg University,
D
tP

Department of HR Studies.
ar
m

Poole, M., (1999). Human Resource Management: Critical Perspectives on

.S

Business and Management. Oxford: Routledge.

w
w
w

Pro Pakistani. (2009). Downsizing, Right Sizing or Team Sizing?. [online]

://

Available at: http://propakistani.pk/2009/07/03/downsizing-or-rightsizing-or-

tp

team-sizing/. [Accessed: 30 July, 2009].

ht

Qureshi, Z.I. (1995). µManagement in South Asia¶, in Saunders, D.M. and

Kanungo, R.N. (eds) New Approaches to Employee Management. Greenwich,
CT: JAI Press.

Rowley, C. (1998) Human resource management in the Asia Pacific region:

om

om

convergence questioned. London: Routledge.

.c

.c
or

or

Saunders, M., Lewis, P. & Thornhill, A. (2007) Research Methods for Business
at

at

Students. 4th edn. Harlow: Pearson Education.

re

re
FC

FC

Schuler, R.S. & Jackson, S.E. (2007) Strategic Human Resource Management.
D

2nd edn. Oxford: Wiley-Blackwell.

tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 61

om

om
Spradley, J. (1979). The ethnographic interview. New York: Holt, Rinehart &

.c

.c
Winston

or

or
at

at
re

re
Storey, J. (1989). New Perspectives on Human Resource Management.

FC

FC
London: Cengage Learning EMEA.

D
tP

tP
ar

ar
Storey, J. (2001) µHuman Resource management today: an assessment¶, in J.
m

m
Storey (ed) Human Resource management: A Critical text. London: Thompson
.S

.S
learning.
w

w
w

w
w

w
Storey, J. (2007). Human Resource Management: A Critical text. 7th edn.
://

://
tp

tp
London: Cengage Learning EMEA.
ht

ht
Tropman, J.E., & McAdams, J.L. (2001). The Compensation Solution: How to
Develop an Employee-driven Rewards System. Oxford: John Wiley and Sons.

Wilson, J.P., (2005). Human Resource Development: Learning and Training for
Individuals and Organizations. 2nd ed. London: Kogan Page Publishers.

om
Walton, R.E., (1985). From control to commitment in the workplace. Harvard

.c
Business Review. 63 (2) pp.77-84. or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 62

om

om
QUESTIONNAIRE (APPENDIX µA¶)

.c

.c
or

or
at

at
re

re
1. To what extent are HR professionals involved in the decision making

FC

FC
process of redundancy?

D
tP

tP
ar

ar
Full involvement Minor involvement No involvement at all
m

m
.S

.S
2. Do you maintain a standing redundancy plan to cater for effective
w

w
recession related issues especially like Headcount Reduction whenever
w

w
w

w
there is a need to do so?
://

://
tp

tp
ht

ht
Yes No

3. As an essential part of your standing redundancy plan, do you maintain

and also regularly update the list of the employees that you think should
be made redundant?

om
Yes Yes Preliminary No

.c
or
at
re

4. Before considering redundancies do you inform your employees,

FC

anticipating the difficult financial conditions likely to be encountered?

D
tP
ar

Yes Discretionary No
m
.S
w

5. Do you have a system of arranging regular meetings with your

w
w

employees so as to discuss the situation, its adverse financial effects and

://

some viable measures that could help in avoiding the redundancies?

tp
ht

Yes Discretionary No

6. Do you consider all other available alternatives as shown below before

finally proceeding with the implementation of your Headcount Reduction?
om

om

• Reduced hours
.c

.c

• Reduced pay
or

or

Unpaid leave
at

at

•
re

re

• Sabbatical
FC

FC

• Retraining
D

D
tP

tP

Yes Not Sure No

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 63

om

om
.c

.c
or

or
at

at
re

re
7. Do redundancies have the chances to become avoidable after giving

FC

FC
thorough consideration to the other available alternatives / options?

D
tP

tP
ar

ar
Yes Not Sure No
m

m
.S

.S
8. Do you offer a voluntary redundancy package and seek willing
w

w
redundancy volunteers?
w

w
w

w
://

://
tp

tp
Yes No
ht

ht
9. What type of consultation do you carry out during the process of
redundancy?

Individual Collective

om
10. In your consultations, do you include the following?

.c
or
at
- the reason for the redundancy dismissals
re

- why and how individuals have been selected

FC

- possible ways of avoiding redundancy

D

- possible alternative work

tP
ar
m

Yes No
.S
w

11. Do Collective consultations start at least 90 days beforehand for

w
w

redundancy dismissals of 100 or more employees, and at least 30 days

://

before notification of redundancies for 20±99 employees?

tp
ht

Yes No

12. Is your collective consultation completed before notice of dismissal is

given to any of the employees concerned?
om

om

Yes No
.c

.c
or

or
at

at

13. In order to achieve the desired results from the redundancy, you are
re

re

expected to be well familiar with the different pools and to identify pool
FC

FC

wise individuals earmarked for redundancy. Have you elaborately

D

covered this aspect in the relevant redundancy procedure?

tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 64

om

om
.c

.c
Yes No

or

or
at

at
14. Do you base your selection on objective criteria which may include the

re

re
following?

FC

FC
D

D
tP

tP
length of service
ar

ar
m

m
attendance records
.S

.S
disciplinary records
w

w
w

w
skills, competencies and qualifications
w

w
://

://
work experience
tp

tp
ht

ht
performance records

If other criteria are used, please specify.

om
15. Do you use µlast in, first out¶ (LIFO) as your method of selection?

.c
or
at
Yes No
re
FC
D
tP

16. Is your selection procedure based on a points system which each

ar

employee scores against the relevant criteria?

m
.S
w

Yes No
w
w
://
tp

17. Do you take care in the choice and application of the criteria to avoid
ht

factors which may be discriminatory on any ground?

Yes No

18. Do you give at least 90 days written notification to BERR (Business

Enterprise & Regulatory Reforms) if 100 or more employees are to be
om

om

made redundant, and at least 30 days for 20 to 99 employees?

.c

.c

Yes No
or

or
at

at

19. When selecting employees for dismissal, do you observe the laws
re

re
FC

FC

relating to unfair dismissal, as in the following cases?

D

D
tP

tP

- trade union membership (or non-membership)

ar

ar

- part-time status
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 65

om

om
- pregnancy or maternity-related reasons

.c

.c
- sex, sexual orientation, marital status, disability, race or religion

or

or
at

at
Yes No

re

re
FC

FC
20. Do you give the opportunity to employees to appeal against their

D
selection for redundancy?
tP

tP
ar

ar
m

m
Yes Discretionary No
.S

.S
w

w
w

w
w

w
21. Do you consider suitable alternative work throughout the organization?
://

://
tp

tp
ht

ht
Yes No

22. Do you give employees paid time off to look for work during the final
notice period?

om
Yes No

.c
or
at
23. In case of compulsory redundancy, what are the important contributing
re
FC

factors to be kept in mind while arriving at Headcount Reduction?

D
tP

Job Performance Disciplinary Record Job

ar

Role
m
.S

Age Responsibility level

w
w
w
://

24. Do you have any consideration to offer some additional financial benefits
tp

to the redundant employees over and above the statutory redundancy

ht

pay?

Yes No

25. Do you offer any other kind of support to all those who are made
redundant?
om

om
.c

.c
or

or

Yes No
at

at
re

re
FC

FC

26. Do you train your managers to handle redundancies with sympathy and
D

clarity?
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 66

om

om
.c

.c
Yes No

or

or
at

at
27. Do you ensure that people know where to go for further advice or

re

re
support?

FC

FC
D

D
tP

tP
Yes No
ar

ar
m

m
.S

.S
28. Does your redundancy program enable employees to refresh their
w

w
w

w
interview skills, redraft CVs and reply effectively to job advertisements?
w

w
://

://
tp

tp
Yes No
ht

ht
29. Do you provide counselling by specialist consultants or others?

Yes No

30. Do you ensure the fair and sensitive treatment of employees who are

om
losing their jobs?

.c
or
at
Yes No
re
FC
D

31. Do you manage redundancies legally and in a way that minimizes the
tP

adverse impact both on those who lose their jobs and on the µsurvivors¶?
ar
m
.S

Yes No
w
w
w

32. Do you implement communication strategies to ensure that everyone in

://

the organization has the correct information about the reasons for
tp

redundancies?
ht

Yes No

33. Do the relations between the management and the left over employees
get adversely affected by the redundancy?
om

om
.c

.c

Yes Not Sure No

or

or
at

at
re

re

34. Do you conduct individual discussions with remaining key workers to

FC

FC

reassure them of their importance and employment prospects?

D

D
tP

tP
ar

ar

Yes No
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 67

om

om
.c

.c
35. Would you prefer to re-induct the redundant employees instead of

or

or
at

at
carrying out fresh recruitment in case the company regains its financial

re

re
strength?

FC

FC
D

D
Fresh recruitment
tP

tP
ar

ar
Redundant employees
m

m
.S

.S
Either of the above mentioned two
w

w
w

w
w

w
://

://
tp

tp
ht

ht

om
.c
or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 68

om

om
.c

.c
COMPARISON TABLE APPENDIX µB¶

or

or
at

at
Mobilink Ufone

re

re
T-Mobile DHL

FC

FC
Questions (Pakistan (Pakistan
(UK) (UK)

D
) )
tP

tP
1. To what extent are HR professionals involved in
ar

ar
1 1 1 1
m

m
the decision making process of redundancy?
.S

.S
2. Do you maintain a standing redundancy plan to
w

w
cater for effective recession related issues 0 0 0 0
w

w
especially like Headcount Reduction whenever
w

w
://

://
there is a need to do so?
tp

tp
3. As an essential part of your standing redundancy
ht

ht
plan, do you maintain and also regularly update the - - - -
list of the employees that you think should be made
redundant?
4. Before considering redundancies do you inform
your employees, anticipating the difficult financial 1 1 0 0
conditions likely to be encountered?

om
5. Do you have a system of arranging regular
meetings with your employees so as to discuss the

.c
situation, its adverse financial effects and some or 1 1 0 0
at
viable measures that could help in avoiding the
re

redundancies?
FC

6. Do you consider all other available alternatives as

D

shown below before finally proceeding with the 1 1 1 0

tP

implementation of your Headcount Reduction?

ar

7. Do redundancies have the chances to become

m

1 1 1 0
.S

avoidable after giving thorough consideration to the

w

other available alternatives / options?

w

1. On
w

1. On
://

some
8. Do you offer a voluntary redundancy package some 1 1
tp

and seek willing redundancy volunteers? Occasion

ht

Occasions
s
Individual
Individual
&
9. What type of consultation do you carry out during & 1 1
the process of redundancy? Collectiv
Collective
e
om

om

10. In your consultations, do you include the

following?
.c

.c
or

or

- the reason for the redundancy dismissals 1 1 1 0

at

at

- why and how individuals have been selected

re

re

- possible ways of avoiding redundancy

FC

FC

- possible alternative work

D

11. Do Collective consultations start at least 90

tP

tP

days beforehand for redundancy dismissals of 100 1 1 0 0

ar

ar

or more employees, and at least 30 days before

m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 69

om

om
notification of redundancies for 20±99 employees?

.c

.c
or

or
12. Is your collective consultation completed before
1 1 1 0

at

at
notice of dismissal is given to any of the employees

re

re
concerned?

FC

FC
13. In order to achieve the desired results from the

D
redundancy, you are expected to be well familiar
tP

tP
with the different pools and to identify pool wise 1 1 0 0
ar

ar
individuals earmarked for redundancy. Have you
m

m
elaborately covered this aspect in the relevant
.S

.S
w

w
redundancy procedure?
w

w
14. Do you base your selection on objective criteria
w

w
which may include the following?
://

://
tp

tp
• length of service
ht

ht
• attendance records
• disciplinary records
• skills, competencies and qualifications 1 1 1 1
• work experience
• performance records

om
If other criteria are used, please specify.

.c
or
15. Do you use µlast in, first out¶ (LIFO) as your
at
0 0 0 0
method of selection?
re
FC

16. Is your selection procedure based on a points

system which each employee scores against the 1 1 0 0
D
tP

relevant criteria?
ar

17. Do you take care in the choice and application

m

of the criteria to avoid factors which may be 1 1 1 1

.S

discriminatory on any ground?

w
w

18. Do you give at least 90 days written notification

w

to BERR (Business Enterprise & Regulatory

://

Reforms) if 100 or more employees are to be made 1 1 0 0

tp

redundant, and at least 30 days for 20 to 99

ht

employees?
19. When selecting employees for dismissal, do you
observe the laws relating to unfair dismissal, as in
the following cases?
• trade union membership (or non-membership) 1 1 0 1
• part-time status
om

om

• pregnancy or maternity-related reasons

.c

.c

• sex, sexual orientation, marital status, disability

or

or

race or religion
at

at
re

re

20. Do you give the opportunity to employees to 1 1 0 1

FC

FC

appeal against their selection for redundancy?

D

21. Do you consider suitable alternative work 1 1 0 0

tP

tP

throughout the organization?

ar

ar

22. Do you give employees paid time off to look for 1 1 1 1

m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 70

om

om
work during the final notice period?

.c

.c
or

or
23. In case of compulsory redundancy, what are the

at

at
important contributing factors to be kept in mind

re

re
while arriving at Headcount Reduction? 1 1 0 0

FC

FC
- Job Performance - Disciplinary Record

D
- Job Role - Age - Responsibility level
tP

tP
24. Do you have any consideration to offer some
ar

ar
additional financial benefits to the redundant
m

m
1 1 1 0
employees over and above the statutory
.S

.S
w

w
redundancy pay?
w

w
25. Do you offer any other kind of support to all 1 1 1 0
w

w
those who are made redundant?
://

://
tp

tp
26. Do you train your managers to handle 1 1 1 1
ht

ht
redundancies with sympathy and clarity?
27. Do you ensure that people know where to go for 1 1 0 0
further advice or support?
28. Does your redundancy program enable
employees to refresh their interview skills, redraft 1 1 0 0
CVs and reply effectively to job advertisements?

om
29. Do you provide counselling by specialist 0 1 0 0
consultants or others?

.c
30. Do you ensure the fair and sensitive treatment or
1 1 1 1
at
of employees who are losing their jobs?
re

31. Do you manage redundancies legally and in a

FC

way that minimizes the adverse impact both on 1 1 1 1

D

those who lose their jobs and on the µsurvivors¶?

tP

32. Do you implement communication strategies to

ar

ensure that everyone in the organization has the

m

1 1 1 0
correct information about the reasons for
.S
w

redundancies?
w

33. Do the relations between the management and

w

the left over employees get adversely affected by 1 0 1 1

://
tp

the redundancy?
ht

34. Do you conduct individual discussions with

remaining key workers to reassure them of their 1 1 0 0
importance and employment prospects?
35. Would you prefer to re-induct the redundant
employees instead of carrying out fresh recruitment
in case the company regains its financial strength? 1 1 0 0
om

om

• Fresh recruitment
• Redundant employees
.c

.c

• Either of the above mentioned two

or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 71

om

om
.c

.c
REQUEST FOR INTERVIEW APPENDIX µC¶

or

or
at

at
re

re
To,

FC

FC
Mr. Salman Shakir

D
M/s. 18 Bentley Road
tP

tP
Slough, Berkshire
ar

ar
SL1 5BD
m

m
United Kingdom.
.S

.S
Tel: 0044-1628 666 875
w

w
w

w
0044-7525 440 286
w

w
Email: s.shakir@herts.ac.uk
://

://
tp

tp
ht

ht
Subject: Request for Interview

Dear

I am currently a postgraduate student of M.A. Human Resource Management

& Employment Relations at the University of Hertfordshire, UK. As an
essential part of my course programme, I am expected to write a dissertation on

om
a topic which reads as ³How can the Soft HRM approach being implemented in

.c
the UK be applied to Pakistani organisations to allow it to them to handle
or
recession-related activities like Headcount Reduction in an effective manner´?
at
This being a research topic, I need to carry out a detailed survey in order to
re
FC

arrive at the satisfactory completion of the research report and for further
presentation to the dissertation supervisor, who is based in the university and
D
tP

constantly monitoring my progress. The topic, which I have selected for the
ar

dissertation is on a human resource related issue, relevant to the human

m

resource systems both in Pakistan as well as UK. In order to carry out the
.S

survey, I most genuinely feel that your useful contribution in the form of
w

interview will be of immense value for the compilation of this project, which will
w
w

be ultimately assessed as part of my course performance. I also take the

://

privilege to submit that all the information gathered in this regard will be in the
tp

form of academic report and will not be shared with anyone without your prior
ht

approval. The Ethics Protocol Number allotted to me for this project is

BS/P/315-08.

In view of the position explained above, you are requested to kindly grant me an
opportunity for an interview on some suitable date and time, suiting your
convenience, which I shall highly appreciate.
om

om
.c

.c

Thanking you for your cooperation.

or

or
at

at
re

re

Yours sincerely
FC

FC
D

Mr. Salman Shakir

tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
APPENDIX µD¶

re re
at at
72

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
APPENDIX µE¶

re re
at at
73

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
APPENDIX µF¶

re re
at at
74

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
APPENDIX µG¶

re re
at at
75

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
APPENDIX µH¶

re re
at at
76

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
APPENDIX µH¶ (CONT¶D)

FC FC
re re
at at
77

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
APPENDIX µH¶ (CONT¶D)

FC FC
re re
at at
78

or or
.c .c
om om
ht ht
tp tp
:// ://
w w
w w
w w
.S .S
m m
ar ar
tP tP
D D
FC FC
re re
at ht at
or tp or
.c ://
w .c
om w om
w
.S
m

University of Hertfordshire Dissertation (2008-2009)

ar
tP
D
FC
re
ht at ht
tp or tp
://
w .c ://
w
w om w
w w
.S .S
m m
ar ar
tP tP
D D
APPENDIX µH¶ (CONT¶D)

FC FC
re re
at at
79

or or
.c .c
om om
 80

om

om
.c

.c
DISSERTATION PROPOSAL APPENDIX µJ¶

or

or
at

at
re

re
FC

FC
Comparison of Soft HRM Policies between UK & Pakistani organizations

D
tP

tP
ar

ar
HRM in the UK is a well-established and documented area. All major
m

m
.S

.S
companies have well-structured HRM policies and procedures. This is not the
w

w
w

w
case in a third-world country like Pakistan, where scarce HRM strategies exist
w

w
://

://
and are not implemented in an efficient manner; where they are in use,
tp

tp
ht

ht
emphasis is placed on the hard side of HRM rather than the soft side.
Organisations are focussed on generating productivity and treat labour as a
resource much as any other resource, and not as an asset. Although HRM in
any organisation is of vital importance as it is, its significance is doubled during
tough economic times, as we can observe during the current recession. Many

om
major companies have had to downsize and job cuts are the order of the day for

.c
or
most businesses. HRM activities like Headcount reduction gain centre stage in
at
re

organisations. Studying HRM from this perspective is not only current, because
FC

of the economic crisis and the subsequent HRM roles, but also necessary to
D
tP

generate a more structured approach to HRM in countries like Pakistan, where

ar
m

this area is not considered to be of pivotal importance in most companies.

.S
w
w
w

Headcount Reduction has to be coupled with soft HRM techniques if the

://
tp

workers in any organisation are to remain satisfied and committed to the well-
ht

being of the organisation, and deliver an acceptable work performance level.

The relationship between soft HRM and employee performance is a less
emphasized area in Pakistan, and such policies that deal with the soft side of
HRM are not put in place. The economic crisis is global, and my interest in
om

om

studying the HRM techniques being applied in the UK and attempting to

.c

.c

infiltrate them into Pakistani organisations stems from the fact that I belong to
or

or
at

at

Pakistan and would like to see the positive practices being used by HRM in the
re

re
FC

FC

UK being applied to organisations in Pakistan, especially in these times of

D

economic strain where many employees are getting laid-off, and thus require
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 81

om

om
even more extensive soft HRM policies to make it easier to handle the

.c

.c
or

or
downsizing.

at

at
re

re
Through my chosen research topic, I would aim to study certain HRM

FC

FC
techniques, particularly Headcount reduction and soft HRM, being used in an

D
tP

tP
organisation in the UK. Next, I aim to compare and contrast these with the
ar

ar
m

m
techniques being employed in a similar Pakistani organisation. This would allow
.S

.S
me to be in a better position to evaluate the various policies and their
w

w
w

w
w

w
effectiveness. Next, I would aim to uncover those weaknesses which exist in the
://

://
tp

tp
techniques being used in the Pakistani organisation, and attempt to suggest
ht

ht
ways to give them a more structured approach via my study of the UK
organisation.

The main theoretical work needed for the study would relate to HRM techniques

om
relevant in the economic recession, particularly Headcount reduction and soft

.c
HRM. As the study involves field-work, most of the findings will have to be
or
at
based on that. In the area of soft HRM, the work of Armstrong (2003) provides
re
FC

valuable insight by focussing on the practical HRM issues and referring to the
D

works of Truss (1999), who states that hard HRM often overtakes the softer
tP
ar

side of HRM; Storey (1989), who considers soft HRM to treat employees as
m
.S

³valued assets´, echoing the work of Guest (1987) who considers employees as
w

means rather than the objects. Walton (1985) mentions the terminology µhard¶
w
w
://

and µsoft as¶ being used by McGregor (1960) to classify forms of Management
tp

control, and his use of theory X and Y to describe the control types. Walton
ht

(1985) emphasized the link between policies of mutuality and employee

commitment, resulting in greater economic success. According to him, the
greater the soft policies and mutual respect, the higher is the level of
commitment. Legge (1995) indicates more support for hard HRM policies as
om

om

opposed to soft ones and noted that policies are adapted to suit the changing
.c

.c
or

or

business needs, labelling it ³thinking pragmatism´; while Wilson (2005) suggests

at

at
re

re

that soft HRM entails thinking of the workers as ³valuable contributors´ to the
FC

FC

organisation, while hard HRM ³smacks of tight control´. Poole (1999) quotes
D

D
tP

tP

storey (1987, 1992), that hard HRM stresses the ³quantitative, the calculative
ar

ar
m

and the business-strategic aspects of managing the headcount resource´, while

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 82

om

om
soft HRM ³stresses communication, motivation and leadership´. Thus, as Poole

.c

.c
or

or
(1999) states, hard HRM treats labour as a resource, while soft HRM treats it as

at

at
re

re
a human being. Tropman and McAdams (2001) state that employees should be

FC

FC
treated as ³investments rather than costs´, and hence headcount reduction is

D
tP

tP
more of a quick-fix than a long-term solution; however, in these times of
ar

ar
m

m
economic recession, many organisations have to turn to downsizing. Bechet
.S

.S
(2008) points out the use of staffing strategies as critical to the effectiveness of
w

w
w

w
w

w
downsizing by any organisation. The work of Lipsig and Dollarhide (1996)
://

://
tp

tp
provides important insight into the process of downsizing, addressing the
ht

ht
human side of the issue as well as the practical side. Tomasko (1987) suggests
suitable alternatives to downsizing, saying that a reduction is counter-productive
to the organisation. Mahmood (2006) provides a good look at downsizing in
Pakistan.

om
.c
The research design will be a Comparative design, with the level of analysis
or
at
being carried out between the HRM departments of cross-cultural organisations,
re
FC

where the variable is going to be the same, i.e., the standard of soft HRM in
D

place to handle headcount reduction. The research is qualitative in nature,

tP
ar

generating theory out of research, and thereby the methodology used would be
m
.S

inductive. The main reason behind the selection of this particular methodology
w

is its compatibility with such qualitative works of study where research needs to
w
w
://

be carried out in order to bring about certain answers. The HRM policies being
tp

used in both the organisations will be evaluated at length to produce the

ht

relevant conclusions. As opposed to this, the deduction method leads on from

the theory into the findings, and hence would not be the most appropriate
methodology for our chosen topic. Secondly, I would welcome the chance to
gain more experience into this particular field of my interest by undertaking
om

om

extensive qualitative research via induction. The epistemological orientation of

.c

.c
or

or

the study is interpretivist, whereby the fundamentals of HRM techniques will be

at

at
re

re

viewed though the perspectives of the concerned managers. The ontological

FC

FC

orientation of the study is constructivist, generating knowledge and learning

D

D
tP

tP

from first-hand experience gained carrying out the field-work.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 83

om

om
The main research methods used will be Ethnography, Qualitative interviewing

.c

.c
or

or
and collection and analysis of the relevant documents. Direct participant

at

at
re

re
observation can be used at the UK site as well as the Pakistani site. Most of the

FC

FC
interpretation will be based on conversations, ranging from formal interviews to

D
tP

tP
informal talks with the concerned participants on each side, i.e., the HRM
ar

ar
m

m
managers. Through field-work and direct interaction, a more descriptive, in-
.S

.S
depth and up-to-date account can be gained of the chosen area of study. The
w

w
w

w
w

w
documents relevant to the area of study will also be collected and studied in
://

://
tp

tp
detail to gain information. The local perceptions relating to the area of study can
ht

ht
be studied using random interviews. The reason for opting for these methods is
their suitability for the kind of work I am undertaking. Ethnography is a most
effective tool for generating first-hand information. Qualitative interviews will
prove invaluable in generating the answers I need about the various processes

om
and procedure, and allow me to effectively compare the two different cultures

.c
and their HRM policies. Structured interviews, where both the UK and the
or
at
Pakistani counterparts are asked the same questions in order for a more solid
re
FC

comparison, would be used for the purpose of the study. Observation will
D

provide insight into the unsaid things and prove to be a useful tool to generate
tP
ar

more specific questions about some procedures that need to be clarified.

m
.S

Triangulation can be carried out by using audio-tapes to record the participants,

w

verbal interview and diary writing. The study of relevant documents, again, will
w
w
://

prove of immense help in order to generate the desired information. Analysis of

tp

the documents will provide even more concrete insight into the ways in which
ht

HRM policies are handled at the different organisations. The research will be
longitudinal, studying the HRM techniques being employed both in the UK site
as well as the Pakistani site extensively, and generating the possibility of going
back for further clarifications or suggestions.
om

om
.c

.c
or

or

As the study involves extensive and consistent field-work, I anticipate certain

at

at
re

re

difficulties that might arise, mainly involving travel. I would have to undertake a
FC

FC

journey to Pakistan, and conduct field-work there. As Pakistani organisations

D

D
tP

tP

are seldom as well structured as their UK counterparts, it might prove time-

ar

ar
m

consuming and painstaking to obtain the needed information. Secondly, it might

.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 84

om

om
be difficult to obtain time from the concerned managers for interviews, which are

.c

.c
or

or
a vital part of the study. In any interview, it is a cause of concern that some

at

at
re

re
people do not willingly provide the required information, which might hamper the

FC

FC
collection of the relevant data for the purpose of the study. Aside from the time

D
tP

tP
and cost constraints, the scope of the work might be limited if the chosen
ar

ar
m

m
organisations are not generally representative of the populace. In addition, as
.S

.S
with any qualitative research, the level of detail involved could make it more
w

w
w

w
w

w
complicated to generalize, thereby introducing variations. An opportunity could
://

://
tp

tp
arise for me to carry out such research that would enable me to suggest
ht

ht
recommendations for the enhancement of HRM policies in the Pakistani
organisation.

The main tasks needed to complete the study are the selection of the

om
appropriate organisations, which can be representative of the general work

.c
environment of the country, and which can provide a look at the HRM policies
or
at
being used; the formulation of a set of relevant questions that can be used at
re
FC

the interview sessions in both the countries, enabling me to gain accurate

D

information from the interviewees and use it to compare and contrast the two
tP
ar

scenarios; the arrangement for the initial and any subsequent interviews in the
m
.S

UK site, trying to keep the number of interviews required at a minimum, and to

w

generate the maximum amount of information and observation per interview;

w
w
://

the analysis of the data from the UK site, arriving at a conclusion about the
tp

practices in place; the travel to Pakistan and a repetition of the procedures

ht

carried out at the UK site, and finally, highlighting the shortcomings in the HRM
policies being employed in the Pakistani organisation and the suggestions for
improving the policies.
om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 85

om

om
.c

.c
DISSERTATION PROPOSAL REFERENCES

or

or
at

at
re

re
Armstrong, M., 2006. A Handbook of Human Resource Management Practice.

FC

FC
10th ed. London: Kogan Page Publishers.

D
tP

tP
Armstrong, M., 2000. Strategic Human Resource Management: A Guide to
ar

ar
Action. 2nd ed. London: Kogan Page Publishers.
m

m
.S

.S
Beer, M. et al. (1985) Human Resource Management: A General Manager¶s
w

w
w

w
Perspective, New York: Free Press.
w

w
://

://
tp

tp
Beer, M., Walton, R., & Spector, B., 1984. Managing Human Assets. New York:
ht

ht
Free Press

Bechet, T., 2008. Strategic Staffing: A Comprehensive System for Effective

Workforce Planning. 2nd ed. New York: AMACOM Div American Mgmt Assn.

Grant, R.M. (1991), "The resource-based theory of competitive advantage:

implications for strategy formulation", California Management Review,, Vol. 33

om
pp.114-35.

.c
or
Guest, D., 1987. Human Resource Management and Industrial Relations.
at
Journal of Management Studies. 24(5) pp. 503- 521.
re
FC

Guest, D.E (1989), "Personnel and HRM: can you tell the difference?",
D
tP

Personnel Management,, 21, No.1, pp.48-51.

ar
m

Hyman, J., & Mason, B., 1995. Managing Employee Involvement and
.S

Participation. London: Sage publishers.

w
w
w

Legge, K., 1978. Power, Innovation and problem-solving in Personnel

://

Management. Maidenhead: McGraw Hill.

tp
ht

Legge, K., 1995. Human Resource Management: Rhetorics and Realities.

Basingstoke: Macmillan.

Lipsig, E., & Dollarhide, M.C., 1996. Downsizing: Law and Practice. Arlington:
BNA Books.
om

om

Mahmood, S., 2006. Good Governance Reforms Agenda in Pakistan: Current

.c

.c

Challenges. New York: Nova Publishers.

or

or
at

at

Poole, M., 1999. Human Resource Management: Critical Perspectives on

re

re

Business and Management. Oxford: Routledge

FC

FC
D

Storey, J., 1989. New Perspectives on Human Resource Management. London:

tP

tP

Cengage Learning EMEA.

ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht
 86

om

om
Storey, J., 1995. Human Resource Management: A Critical Text. Oxford:

.c

.c
Routledge.

or

or
at

at
Tomasko, R.M., 1987. Downsizing: Reshaping the Corporation for the Future.

re

re
New York: AMACOM.

FC

FC
Tropman, J.E., & McAdams, J.L., 2001. The Compensation Solution: How to

D
Develop an Employee-driven Rewards System. Oxford: John Wiley and Sons.
tP

tP
ar

ar
Wilson, J.P., 2005. Human Resource Development: Learning and Training for
m

m
Individuals and Organizations. 2nd ed. London: Kogan Page Publishers.
.S

.S
w

w
w

w
Walton, R.E., 1985. From control to commitment in the workplace. Harvard
w

w
Business Review. 63 (2) pp.77-84.
://

://
tp

tp
ht

ht
Walton, R.E., & Lawrence, P.R., 1985. HRM Trends and Challenges. Boston:
Harvard University Press.

om
.c
or
at
re
FC
D
tP
ar
m
.S
w
w
w
://
tp
ht

om

om
.c

.c
or

or
at

at
re

re
FC

FC
D

D
tP

tP
ar

ar
m

m
.S

.S
w

w
w

w
w

w
://

://
tp

tp

University of Hertfordshire Dissertation (2008-2009)

ht

ht