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Introduction:

The systematic and growing internationalization of many companies is essentially a part of their business policy or strategic management. The stimulus for Internationalization comes from the urge to grow, the need to become more competitive, the need to diversify and to gain strategic advantages of internationalization. Many companies in India, like several pharmaceutical firms, have realized that a major part of their future growth will be in the foreign markets.

GLOBALISATION
The term "globalization" has acquired considerable emotive force. Some view it as a process that is beneficial a key to future world economic development and also inevitable and irreversible. Others regard it with hostility, even fear, believing that it increases inequality within and between nations, threatens employment and living standards and thwarts social progress. This brief offers an overview of some aspects of globalization and aims to identify ways in which countries can tap the gains of this process, while remaining realistic about its potential and its risks. Globalization offers extensive opportunities for truly worldwide development but it is not progressing evenly. Some countries are becoming integrated into the global economy more quickly than others. Countries that have been able to integrate are seeing faster growth and reduced poverty. Outward-oriented policies brought dynamism and greater prosperity to much of East Asia, transforming it from one of the poorest areas of the world 40 years ago. And as living standards rose, it became possible to make progress on democracy and economic issues such as the environment and work standards. By contrast, in the 1970s and 1980s when many countries in Latin America and Africa pursued inwardoriented policies, their economies stagnated or declined, poverty increased and high inflation became the norm. In many cases, especially Africa, adverse external developments made the problems worse. As these regions changed their policies, their incomes have begun to rise. An important transformation

is underway. Encouraging this trend, not reversing it, is the best course for promoting growth, development and poverty reduction. The crises in the emerging markets in the 1990s have made it quite evident that the opportunities of globalization do not come without risks risks arising from volatile capital movements and the risks of social, economic, and environmental degradation created by poverty. This is not a reason to reverse direction, but for all concerned in developing countries, in the advanced countries, and of course investors to embrace policy changes to build strong economies and a stronger world financial system that will produce more rapid growth and ensure that poverty is reduced. How can the developing countries, especially the poorest, be helped to catch up? Does globalization exacerbate inequality or can it help to reduce poverty? And are countries that integrate with the global economy inevitably vulnerable to instability? These are some of the questions covered in the following sections.

What is Globalization?
Economic "globalization" is a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. There are also broader cultural, political and environmental dimensions of globalization that are not covered here. At its most basic, there is nothing mysterious about globalization. The term has come into common usage since the 1980s, reflecting technological advances that have made it easier and quicker to complete international transactions both trade and financial flows. It refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity village markets, urban industries, or financial centers. Markets promote efficiency through competition and the division of labor the specialization that allows people and economies to focus on what they do best. Global markets offer greater opportunity

for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets. But markets do not necessarily ensure that the benefits of increased efficiency are shared by all. Countries must be prepared to embrace the policies needed, and in the case of the poorest countries may need the support of the international community as they do so.

Movement of people: Workers move from one country to another partly To find better employment opportunities. The numbers involved are still quite small, but in the period 1965-90, the proportion of labor forces round the world that was foreign born increased by about onehalf. Most migration occurs between developing countries. But the flow of migrants to advanced economies is likely to provide a means through which global wages converge. There is also the potential for skills to be transferred back to the developing countries and for wages in those countries to rise.

Spread of knowledge (and technology): Information exchange is an Integral, often overlooked, aspect of globalization. For instance, direct foreign investment brings not only an expansion of the physical capital stock, but also technical innovation. More generally, knowledge about production methods, management techniques, export markets and economic policies is available at very low cost, and it represents a highly valuable resource for the developing countries.

Stages of Globalization
Normally, a firm passes through different stages of development before it becomes a truly global corporation. Typically, a domestic firm starts its international business by exporting. Later it may establish joint ventures or subsidiaries abroad. From an international firm it may then develop into a multinational firm and finally into a global one. Ohmae identifies five different stages in the development of a firm into a global corporation. The first stage is the arm's length service activity of essentially domestic company which moves into new

markets overseas by linking up with local dealers and distributors. In stage two, the company takes over these activities on its own. In the third stage, the domestic based company begins to carry out its own manufacturing, marketing and sales in the key foreign markets. In stage four, the company moves to a full insider position in these markets, supported by a complete business system including R&D and engineering. This stage calls on the managers to replicate in new environment .the hardware, systems and operational approaches that have worked so well at home. It forces them to extend the reach of domestic headquarters, which now s to provide support functions such as personnel and finance, to all overseas activities. Although stage four, the headquarters mentality continues to dominate. Different local operations are linked, their relation to each other established by their relation to the centre. In the fifth stage, the company moves toward a genuinely global mode of operation. In this context, Ohmae points out that a company's ability to serve local customers in markets around the globe in ways that are truly responsive to their needs as well as to the global character of its industry depends on its ability to strike a new organizational balance. What is called for is what Akio Morita of Sony has termed global localization, a new orientation that simultaneously looks Both directions. Getting to stage five, however, means venturing onto new ground together. Ohmae argues that to make this organizational transition, a company must denationalize their operations and create a system of values shared by corporate managers around the globe to replace the glue a nation based orientation once provided. Ohmae further observes that today's global corporations are nationality- less because consumers have become less nationalistic. True global corporations serve the interests of customers, not Governments. They do not exploit local situations and then repatriate all the profits back home, leaving each local area poorer for their having been there. They invest, they train, they pay taxes, they build up infrastructure and they provide good value to customers in all the countries here they do business. IBM Japan, for instance, has provided employment to bout 20,000 Japanese and over the past decade has provided three times more tax revenue to the Japanese Government than has the Japanese company Fujitsu.

1. Impact

of Globalization on HR Implication in Pakistan:

Globalization represents the structural making of the world characterized by the free flow of technology and human resources across national boundaries as well as the spread of Information Technology and mass media presenting an ever-changing and competitive business environment. According to Wikipedia the term globalization is defined as: The process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade . Organizations are increasingly becoming global in their operations. Technology has made it increasingly easy to transcend geographical barriers to collaborating with overseas professionals and organizations. Global HR system enables corporations to tackle new markets efficiently especially through mergers and acquisitions or foreign direct investments. Global HR includes leveraging tacit and explicit knowledge across businesses, thus creating a learning environment, conducive to continuous professional development and business growth for the organization.

THE IMPACT OF GLOBALIZATION HUMAN RESOURCE MANAGEMENT:


Human resource management has changed in name various times throughout history. The name change was mainly due to the change in social and economic activities throughout history. Industrial Welfare Industrial welfare was the first form of human resource management (HRM). In 1833 the factories act stated that there should be male factory inspectors. In 1878 legislation was passed to regulate the hours of work for children and women by having a 60 hour week. During this time trade unions started to be formed. In 1868 the 1st trade union conference was held. This was the start of collective bargaining. In 1913 the number of industrial welfare workers had grown so a conference organized by Sebum Rowntree was held. The welfare workers association was formed later changed to Chartered Institute of Personnel and Development. Recruitment and Selection It all started when Mary Wood was asked to start engaging girls during the 1st world war. In the 1st world war personnel development increased due to government initiatives to encourage the best use of people. In 1916 it became compulsory to have a welfare worker in explosive factories and was encouraged in munitions factories. A lot of work was done in this field by the army forces. The armed forces focused on how to test abilities and IQ along with other research in human factors at work. In 1921 the national institute of psychologists established and published results of studies on selection tests, interviewing techniques and training methods.

Acquisition of other Personnel Activities During the 2nd world war the focus was on recruitment and selection and later on training; improving morale and motivation; discipline; health and safety; joint consultation and wage policies. This meant that a personnel department had to be established with trained staff. Industrial Relations Consultation between management and the workforce spread during the war. This meant that personnel departments became responsible for its organization and administration. Health and safety and the need for specialists became the focus. The need for specialists to deal with industrial relations was recognized so that the personnel manager became as spokesman for the organization when discussions where held with trade unions/shop stewards. In the 1970's industrial relations was very important. The heated climate during this period reinforced the importance of a specialist role in industrial relations negotiation. The personnel manager had the authority to negotiate deals about pay and other collective issues. Legislation In the 1970's employment legislation increased and the personnel function took the role of the specialist advisor ensuring that managers do not violate the law and that cases did not end up in industrial tribunals. Flexibility and Diversity In the 1990's a major trend emerged where employers were seeking increasing flexible arrangements in the hours worked by employees due to an increase in number of part-time and temporary contracts and the invention of distance working. The workforce and patterns of work are becoming diverse in which traditional recruitment practices are useless. In the year 2000, growth in the use of internet meant a move to a 24/7 society. This created new jobs in e-commerce while jobs were lost in traditional areas like shops. This meant an increased potential for employees to work from home. Organizations need to think strategically about the issues these developments raise. HRM manager s role will change as changes occur. Information Technology Some systems where IT helps HRM are: Systems for e-recruitment; On-line short-listing of applicants; developing training strategies on-line; Psychometric training; Payroll systems; Employment data; Recruitment administration; References; Pre-employment checks. IT helps HR managers offload routine tasks which will give them more time in solving complex tasks. IT also ensures that a greater amount of information is available to make decisions.

HISTORICAL MILESTONES IN HRM DEVELOPMENT


Table 1 identifies some of the major milestones in the historical development of HRM. Frederick Taylor, known as the father of scientific management, played a significant role in the development of the personnel function in the early 1900s. In his book, Shop Management, Taylor advocated the "scientific" selection and training of workers. He also pioneered incentive systems that rewarded workers for meeting and/or exceeding

performance standards. Although Taylor's focus primarily was on optimizing efficiency in manufacturing environments, his principles laid the ground-work for future HRM development. As Taylor was developing his ideas about scientific management, other pioneers were working on applying the principles of psychology to the recruitment, selection, and training of workers. The development of the field of industrial psychology and its application to the workplace came to fruition during World War I, as early vocational and employmentrelated testing was used to assign military recruits to appropriate functions. The Hawthorne Studies, which were conducted in the 1920s and 1930s at Western Electric, sparked an increased emphasis on the social and informal aspects of the workplace. Interpretations of the studies emphasized "human relations" and the link between worker satisfaction and productivity. The passage of the Wagner Act in 1935 contributed to a major increase in the number of unionized workers. In the 1940s and 1950s, collective bargaining led to a tremendous increase in benefits offered to workers. The personnel function evolved to cope with labor relations, collective bargaining, and a more complex compensation and benefits environment. The human relations philosophy and labor relations were the dominant concerns of HRM in the 1940s and 1950s. HRM was revolutionized in the 1960s by passage of Title VII of the Civil Rights Act and other anti-discrimination legislation as well as presidential executive orders that required many organizations to undertake affirmative action in order to remedy past discriminatory practices. Equal employment opportunity and affirmative action mandates greatly complicated the HRM function, but also enhanced its importance in modern organizations. As discussed more fully in a later section, these responsibilities continue to comprise a major part of the HRM job. Finally, changes in labor force demographics, technology, and globalization since the 1980s have had a major impact on the HRM function. These factors also are discussed in more detail in a later section. Table 1: Milestones in the Development of Human Resource Management Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive-based compensation systems to motivate employees.

18901910

19101930

Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection.

19301945

The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity.

1945-

In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater

1965

emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage.

19651985

The Civil Rights movement in the U.S. reaches its apex with passage of the Civil Rights Act of 1964. The personnel function is dramatically affected by Title VII of the CRA, which prohibits discrimination on the basis of race, color, sex, religion, and national origin. In the years following the passage of the CRA, equal employment opportunity and affirmative action become key human resource management responsibilities.

Three trends dramatically impact HRM. The first is the increasing diversity of the labor force, in terms of age, gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to "managing diversity." A second trend is the globalization of business and the accompanying technological revolution. These factors have led to dramatic changes in transportation, 1985present communication, and labor markets. The third trend, which is related to the first two, is the focus on HRM as a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency.

Globalization Implications on HRM in Pakistan


Unfortunately, there are not many organizations in Pakistan that use this resource Optimally. Most of them abuse, misallocate and misdirect this resource to an incredible degree. All organizations, whether national, multinational or international, have to deal with this resource, which is limited in the environments they operate. Organizations strive to use these limited or scarce resources efficiently and effectively in order to achieve their goals and objectives. The most important elements for today's organizational success are work-force skills, product quality and customer service. All three elements are heavily dependent upon human resources as education, training and motivation embodied in people. In present day s dynamic business world, change is the only factor, which will remain constant - changes in technology, consumer demand, demographic composition of workforce and global competition will have impact on the role of human resource professionals. With time, organizations are becoming increasingly aware of HR contribution to the progress and growth of their businesses. In this millennium, slowly but surely all countries are becoming safer and more attractive For investments. More and more socialist and centrally planned closed economies are opening up for trade and investment opportunities. Countries are opting for free-market economies, private ownership is being encouraged, the importance of the consumers is being realized and generally they are also becoming more democratic. At the same time, new institutions are emerging to reduce non-commercial risk of multinational ventures. These developments in the world market have significant impact on the future of HR practitioners in terms of research and professional practice. Human resource in any country is the primary factor for setting up

the direction and pace of the socio-economic development. For achieving a substantial part of our industrial vision, there is a need to create and nurture a well-developed human capital base, with skills and work ethics of highest quality. Any nation's capacity to face the challenges of industrialization and globalization of business of the 21st century depends heavily on its human resources. Out of capital, technology and human resources, it is the human resources that will help organizations to face the challenges of business globalization. Capital can be generated, technology can be developed, but appropriately encouraged and motivated human resource is required to propel the organization and the nation through the coming challenges.

Pakistan is blessed with high quality of human resources, which is also industrious and productive, but much less demanding than their counterparts in the developed world. Pakistani nation is hard working and has always stood up to expectations. Our people are energetic and workers are dedicated. In fact, HR is the most important contributor to the economic success of Pakistan over the past decades. We discuss Telenor s strategies which make it culturally compatible to the human resource of different countries where so ever it has set up its operations. Following are these strategies: RECRUITMENT: Telenor claims FREEDOM OF EXPRESSION The hiring criterion in Telenor is same throughout the globe. However due to changes in the skills, knowledge and abilities of people in different countries , Telenor has varying staff hiring priorities eg here in Pakistan university education is quite common and cheaper as compared to western countries. Pakistan has a pool of graduates and post-graduates, so obviously more educated and skilled person is hired whereas in western set ups Telenor has mostly graduates in job positions. Telenor hires young and talented people more as compared to experienced elderly in Asian countries. It is due to the fact that the creativity and freshness required by service sector like Telenor is found in only young talents in Asia. The middle aged people in Asian countries are less enthusiastic and fresh. However people in western countries remain enthusiastic and fresh for a relatively longer period of time. 80% of Telenor s staff is young blood. GENERAL SET-UP There is a lot of respect given to all employees. Here the manager shakes hand with the mop. All the employees self-serve themselves. They are not allowed to make the service men work in their service There are no cabins in any Telenor centre. There is a central lobby where the front desk men to the Regional Officer (RO) all sit together. As a cultural symbol Pakistani Telenor offices have placed a big bell with a string on the main door of offices. It is for the purpose that anyone who feels himself satisfied with Telenor can ring the bell. It is in coincidence with the practice of Late Mughal King Jahangir who used to listen to the petitions of his sub ordinates whoever has any complaint.

TRAINING Training system is much vibrant in European Telenor set-ups. But owing to the lesser revenues generated in Asian markets, Telenor is not carrying out best training here. Training is always ignored in Pakistan by all. However Telenor keeps on conducting one day training for its employees throughout their work life. JOB DUTIES Telenor is carrying out equal and uniform strategies everywhere. Its job duties and their requirements are same. It offers flexible work hours to all employees in its customer s service call centers. There is no discrimination on gender base in Telenor. The reward system is same everywhere. Everyone is rewarded on good performance in monetary units as well as recognition and applaud. All employees working in Telenor along with their family members are medically insured. They can get up to 10 lakhs on medical treatment. Owing to the more health problems among aged in Asian countries, Telenor prefers to retain young and healthy employees. In western countries mostly young people are medically tested for maladies. There are no pension plans in Telenor. There are provident funds provided in Telenor. CULTURAL COMPATIBILITY Telenor do value the culture of its transnational bases eg in Pakistan Telenor has the policy to send its 2 employees on Hajj every year Telenor arranges aftar for its staff in Ramzan. In the last annual meeting of Telenor, They have decided sherwani as the dress code in Pakistan. Even in inter-province culture differences, the example of Quetta is interesting where employees aren t asked to wear suits. They wear shalwar kameez CONFLICT RESOLUTION Referring to the Denmark issue created in Pakistan against Telenor, its HR had no impact due to this controversy. Not a single employee felt against Telenor. It was a great achievement of Telenor that it got in the shape of loyalty and concern of its HR towards Telenor.

2. STRATEGIC HRM AS A RESPONSE TO THE CHALLENGES OF GLOBALIZATION.


Strategic Human Resource Management (SHRM) involve a set of internally consistent policies and practices designed and implemented to ensure that a firm's human capital (employees) contribute to the achievement of its business objectives (Baird & Meshoulam, 1988; Delery & Doty, 1996; Huselid, et al., 1997; Jackson & Schuler, 1995). Schuler (1992: 18) has developed a more comprehensive academic definition of SHRM: Strategic human resources management is largely about integration and adaptation. Its concern is to ensure that: (1) human resources (HR) management is fully integrated with the strategy and the strategic needs of the firm; (2) HR policies cohere both across policy areas and across hierarchies; and (3) HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work.

For Wright & McMahan (1992), SHRM refers to the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals (p. 298). To sum up, it appears that some of the frequently cited fundamental elements of SHRM in the literature are: SHRM practices are macro-oriented, proactive and long term focused in nature; views human resources as assets or investments not expenses; implementation of SHRM practices bears linkage to organizational performance; and focusing on the alignment of human resources with firm strategy as a means of gaining competitive advantage (Nee & Khatri, 1999:311).

Theoretical Foundations of Strategic HRM

Several theoretical perspectives have been developed to organize knowledge of how HR practices are impacted by strategic considerations as briefly described below. Wright & McMahan (1992) have developed a comprehensive theoretical framework consisting of six theoretical influences. Four of these influences provide explanations for practices resulting from strategy considerations. These include, among others, the resourcebased view of the firm and behavioral view. The two other theories provide explanations for HR practices that are not driven by strategy considerations: (1) Resource Dependence and (2) Institutional Theory. The resource-based theory of the firm blends concepts from organizational economics and strategic management (Barney, 1991). This theory holds that a firm s resources are key determinants of its competitive advantage. Firms can develop this competitive advantage only by creating value in a way that is difficult for competitors to imitate. Traditional sources of competitive advantage such as financial and natural resources, technology and economies of scale can be used to create value. However, the resource-based argument is that these sources are increasingly accessible and easy to imitate. Thus they are less significant for competitive advantage especially in comparison to a complex social structure such as an employment system. If that is so, human resource policies and practices may be an especially important source of sustained competitive advantage (Jackson & Schuler, 1995; Pfeiffer, 1994). Specifically, four empirical indicators of the potential of firm resources to generate competitive advantage are: value, rareness, limitability and substitutability (Barney (1991). In other words, to gain competitive advantage, the resources available to competing firms must be variable among competitors and these resources must be rare (not easily obtained). Three types of resources associated with organizations are (a) physical (plant; technology and equipment; geographic location), (b) human (employees' experience and knowledge), and (c) organizational (structure, systems for planning, monitoring, and controlling activities; social relations within the organization and between the organization and external constituencies). HR practices greatly influence an organization's human and organizational resources and so can be used to gain competitive advantages (Schuler & MacMillan, 1984) The second theoretical influence is the behavioral view based on contingency theory. This view explains practices designed to control and influence attitudes and behaviors, and stresses the instrumentality of such practices in achieving strategic objectives. The cybernetic system explains the adoption or abandonment of HR practices resulting from feedback on contributions to strategy. For example, training programs may be adopted to help pursue a strategy and would be subsequently adopted or abandoned based on feedback. The fourth influence, based on transaction costs explains why organizations use control systems such as performance evaluation and reward systems. The argument is that in the absence of performance evaluation systems linked to reward systems, strategies might not be pursued. The other two theories provide explanations for HR practices that are not driven by strategy considerations but based on power and political influences, control of resources (resource-based theory) and expectations of social responsibility (institutional theory) (Greer, 1995: 107-8).

Implications of SHRM for HRM Practices


The idea that individual HR practices impacts on performance in an additive fashion (Delery & Doty, 1996) is inconsistent with the emphasis on internal fit in the resource-based view of the firm. With its implicit systems perspective, the resource-based view suggests the importance of complementary resources , the notion that individual policies or practices have limited ability to generate competitive advantage (Barney, 1995:56). This idea, that a system of HR practices may be more than the sum of the parts, appears to be consistent with discussions of synergy, configurations, contingency factors, external and internal fit, holistic approach, etc (Delery & Doty, 1996; Huselid, 1995). Drawing on the theoretical works of Osterman (1987), Sonnenfeld & Peiperl (1988), Kerr and Slocum (1987) and Miles & Snow (1984), Delery & Doty (1996) identified seven practices that are consistently considered strategic HR practices. These are (1) internal career opportunity (2) formal training systems (3) appraisal measures (4) profit sharing (5) employment security (6) voice mechanisms and (7) job definition. There are other SHRM practices that might affect organizational performance. For example, Schuler & Jackson (1987) presented a very comprehensive list of HR practices. However, the seven practices listed by Delery and Doty above appear to have the greatest support across a diverse literature. For example, nearly all of these are also among Pfeffer's (1994) 16 most effective practices for managing people.

An obvious question at this juncture is: How can organizations effectively adopt, implement and maximize HRM practices for valued firm level outcomes? That is, how can firms increase the probability that they will adopt and then effectively implement appropriate HRM practices? Insuring that members of the HRM personnel have the appropriate human capital or competencies has been suggested as one way to increase the likelihood of effective implementation of HRM practices (Huselid, et al., 1997).

Ulrich & Yeung (1989) argue that the future HR professional will need four basic competencies to become partners in the strategic management process. These include business competence, professional and technical knowledge, integration competence and ability to manage change.

On the other hand, the United Kingdom-based Management Charter Initiative (MCI), an independent competence-based management development organization, identifies seven key roles and required competencies. These include competencies required to manage roles like managing activities, managing resources, managing people, managing information, managing energy, managing quality and managing projects (MCI Management Standards, April, 1997). Finally, Huselid, et al (1997) identified two sets of HR personnel competencies as important for HR personnel: (1) HR professional competencies and (2) Business-related competencies.

HR professional competence describes the state-of-the-art HR knowledge, expertise and skill relevant for performing excellently within a traditional HR functional department such as recruitment and selection, training, compensation, etc. This competence insures that technical HR knowledge is both present and used within a firm (Huselid, et al., 1997). Business-related competence refers to the amount of business experience HR personnel have had outside the functional HR specialty. These capabilities should facilitate the selection and implementation of HRM policies and practices that fit the unique characteristics of a firm including its size, strategy, structure, and culture (Jackson & Schuler, 1995). In other words, these competencies will enable the HR staff to know the company's business and understand its economic and financial capabilities necessary for making logical decisions that support the company's strategic plan based on the most accurate information possible.

Strategic HRM and Organizational Performance


Researchers in SHRM posit that greater use of such practices will always result in better (or worse) organizational performance (Abowd, 1990; Gerhart and Milkovich, 1990; Huselid, 1995; Leonard, 1990; Terpstra and Rozell, 1993). Leonard (1990) found that organizations having long-term incentive plans for their executives had larger increase in return on equity over a four-year period than did other organizations. Abowd (1990) found that the degree to which managerial compensation was based on an organization's financial performance was significantly related to future financial performance. Gerhart and Milkovich (1990) found that pay mix was related to financial performance. Organizations with pay plans that included a greater amount of performance contingent pay achieved superior financial performance. In combination, these studies indicate that organizations with stronger pay-for-performance norms achieved better long-term financial performance than did organizations with weaker pay-for-performance norms.

Terpstra and Rozell (1993) posited five "best" staffing practices and found that the use of these practices had a moderate and positive relationship with organizational performance. Finally, Huselid (1995) identified a link between organization-level outcomes and groups of high performance work practices. Instead of focusing on a single practice (e.g., staffing), Huselid assessed the simultaneous use of multiple sophisticated HR practices and concluded that the HR sophistication of an organization was significantly related to turnover, organizational productivity and financial performance.

In the case of requisite competencies for HR personnel, emerging evidence from empirical research demonstrates the increasing need for HR personnel to have both HR professional and business-related skills and competencies. A survey of HR executives in the US show that HR managers are spending relatively less time in record keeping and auditing, while their time spent in their activities as a business partner have doubled. The survey also revealed that HR managers believe that their HR staff's most important skill needs are team skills, consultation skills and an understanding of business (Noe, et al., 1997).

Managerial competencies particularly in the HR function bring two advantages to the HR function: (1) Enhance the status of the HR department (Barney & Wright, 1988) (2) Act as important influences on the level of integration between HR management and organization strategy (Golden & Ramanujam, 1985; Ropo, 1993). A study of Singaporean companies found that when HR managers lack the necessary skills to perform their duties competently, line managers and executives take over some of the functions of HR managers (Nee & Khatri, 1999). Research on managerial competencies by Ropo (1993:51) stressed that the internal dynamism of the HR function serves as the most critical mechanism to keep the integration process going after it has been started under favorable organizational and strategic circumstances . Other studies show that if HR managers can evaluate their priorities and acquire new sets of professional and personal competencies, the HR function would be able to ride the wave of business evolution proudly with other functions in the organization.

Huselid, et al (1997) conducted an elaborate study on 293 firms in the US to evaluate the impact of human resource managers' professional/technical competencies on HR practices and the latter's impact on organizational performance. Results of the study suggest that consistent with the resource-based view of the firm, there exist a significant relationship between SHRM practices and firm performance. They found that (1) HR related competencies and, to a lesser extent, business-related competencies increase the extent of effective implementation of SHRM practices and (2) consistent with recent studies linking HRM activities and firm performance (Arthur, 1994; Cutcher-Gershenfeld, 1991; Huselid, 1995; Huselid & Becker, 1996; MacDuffie, 1995), the study support the argument that investments in human resources are a potential source of competitive advantage.

Recent reviews of theoretical and empirical literature (Juhary Ali & Bawa, 1999; Irwin, et al., 1998; Jackson & Schuler, 1995) suggest that a variety of factors affect the relationship between HRM and firm performance. These factors include firm size, technology and union coverage.

The influence of firm size on HRM practices is fully documented in theoretical and empirical studies. For example, institutional theory suggests that larger organizations should adopt more sophisticated and socially responsive HRM practices because they are more visible and are under more pressure to gain legitimacy. Many empirical studies show that firm size is an important variable influencing HRM practices (Ng and Maki, 1993; Wagar, 1998). There are emerging evidences that HR practices may differ in organizations depending on the level of technological sophistication in terms of training (Majchrzak, 1988), performance appraisal (Ouchi, 1977, 1980; Snell, 1992) and reward systems (Kaus, 1990; Snell & Dean, 1992). Theoretical and empirical studies also support the position that the presence of specific HRM practices may differ based on the union coverage of a firm (Ng & Maki, 1993, Wagar, 1998; Lawler & Mohrman 1987).

Globalization and Its Influence on Strategic Human Resource Management, Competitive Advantage and Organizational Success.
Globalization is the buzz word of modern times and has many varying perspectives. It Describes the way that world trade, culture and technologies have become rapidly integrated over the last twenty years. (Ozbilgin M 2005) Globalization creates conditions of rapid change, all the changes way from the cyber revolution to trade liberalization, worldwide homogenization of consumer goods and services and export oriented growth, Are all components of the phenomenon of globalization? (Hucysnki et al 2002). It is attributed to various considerations which are often associated with a wide range of Factors allied with it, which is of an economic, political, cultural and sociological nature. (Sparrow et al 2004). Globalisation is considered to exists within the action of those relatively (few firms) that look at the world as being nation less and borderless. (Ohmae in Sparrow et al 2004).These firms and multinational corporations carry out trade on a Global basis and their main concerns are fewer trade barriers, profit maximization, Satisfying customer needs and creating a niche or market position, all these Mechanisms have a direct and profound impact on the behaviors, attitudes and Mindsets of people who work in such organisations, and on how they should be Managed. (Sparrow et al 2004) The forces of globalization, have changed the world of Work, some of the principal changes, the world over have been the emphasis on Competitiveness, increasing numbers of women joining the work-force, a more mobile and diverse work-force and growth in part-time and flexible work. Globalization is often portrayed as a new stage in world development. (Sparrow et al 2004), which is Characterized by intensified competition and continuing technological innovation, which Have emphasized the importance of product quality and customer care which in turn has Increased the emphasis on people management. (Hucysnki ET al2002). To meet some of the challenges posed by intense competition organizations have been downsized, Delivered, decentralized and are less hierarchical in nature. These changes have subsequently leaded to many developments in HRM, as employers have to cope with the Challenges posed by a competitive global economic environment. (Redman et al 2001), Organizations are increasingly turning to the unique contribution provided to them by Their human resources as a source of competitive advantage (Wright et al in Morley et al 2004).Organizations and institutions are increasingly realizing the importance of human Competitiveness as essential to organizational survival and economic progress. There is Also a growing belief that if organizations have to survive and thrive in a global Economy, they require worldclass human resource (HR) competencies and the Processes for managing them. (Khandekar et al 2005) and this is in line with the (RBV) Perspective of Strategic HRM, which states that employee knowledge, skills, talents and Know-how are the central source of organizational performance, human resources are More likely to produce competitive advantage because they often are truly rare and can Be more difficult for competitors to imitate (Jackson et al 2004) and that the effective Management of human resources is critical to obtaining organizational success. The Basic premise on which strategic human resource management is based is that human Resources are strategic valued assets and a source of competitive

Advantage. (Khanderkar et al 2005)Competitive advantage is those abilities, Capacities, resources and decisions that undermine an organization s capacity to Survive and maintain its position. Management of people is increasingly being considered as one of the key links to generating a competitive advantage. Competitive Advantage leads to organizational effectiveness. (Lengnick in Khanderker et al 2005).Among a firm s intangible resources Human Resources with their tacit Knowledge, skills and talents are more likely to produce competitive advantage, as these constitute the core competencies of the organization, which will enable an Organization to capitalize on opportunities in the market place and avoid threats to its Desired position.

An effective Human resource system it says should fulfill the following functions.

The smoother introduction of new employees into the company through the Recruitment and induction processes and in the first job assignment Personal dynamics-ensuring that employees devote part of their energies to The goals of the company through attention to reward systems, Communications, encouragement and career development Progress-being receptive to employee ideas and preparing employees for the New skills demanded by tomorrow s needs through training, cross fertilization and job enrichment Setting up a permanent and constructive internal dialogue Attention to quality of working life, providing as much security as possible and a fair share in the fortunes of the enterprise. (Handy et al 1990) Building the image of the organization-demonstrating a humane system of Organization. It is worth understanding that all this debate about whether employees are an asset is Based on the actuality that effective human resource management practices leads to Organizational success and this becomes increasingly significant in global organizations Which have to cope with huge levels of competition and unprecedented rapid change?

SHRM in Pakistani organizations


In many Pakistani companies the Human Resource (HR) function is still mainly about Personnel Administration, and recently also an industrial relations safeguard. There is a widely held perception that the personnel

function is confined to a reactive, fire fighting and administrative position in which it fails to be relevant to the aims of the organization. Some researchers have also noted signs of the personnel management role being eroded. Responsibilities for certain activities, formerly delegated to it are being returned to line management in a redefinition of management s responsibilities for managing people. The Future of People Management in Pakistan This brings us to the question of the state of human resource management in Pakistan. Are HR Professionals ready, and able to become strategic partners in their organizations? Change must happen now and we need relevant information from HR Professionals and line managers to drive that change! If HR practices are to be leveraged by the HR function, HR Professionals must begin to act more professionally. Unfortunately, HR does not have much time left to regain its credibility in the eyes of the rest of the organization.

Empirical Evidence of SHRM Practice

Strategic human resource management has most prominently been explored in the business, health, and service organizations. This research has focused on the relationship of SHRM practices to individual and organizational outcomes such as employee satisfaction or profit margins. Recent studies have examined the relationship between SHRM and employee attitudes, satisfaction, and turnover within various industries across the globe. An analysis of the Pakistani banking industry found that employee satisfaction with HR practices was positively related to turnover intentions, especially with younger employees and employees in high performing organizations (Khilji & Wang, 2007). Green, et al. (2006) and Huselid (1995) found similar results in the United States, while Boswell (2006) found that organizations that implemented SHRM practices had a strong correlation to employees who understood organizational goals, objectives, and strategy and understood how to contribute to them.

3. HUMAN RESOURCE MANAGEMENT PLANNING


A BREAKDOWN OF THE HRM SCOPE ITS CHALLENGES AND GLOBAL IMPACT

Human Resource Management is concerned with enhanced productivity fully utilizing the combined talent and skills of the entire workforce of an organization. HRM must today reinvent itself to cope up with the demands of a global economy. Here we consider the scope of Human Resource management. Human resources may be broadly defined as the sum total of all the skills and capabilities both inherent and acquired - of an organization s entire workforce. Human Resources Management (HRM), for it to be effective,

must appropriately deal with the aptitude, attitude, talent and skills of each individual employee within the organization. The objective of Human Resource Management must be to evolve a suitable process whereby employees perform optimally and the goals of each individual employee as well as the organization are met. This can be further understood by taking a closer look at the scope of Human Resource Management.

SCOPE OF HRM
It may be difficult to write succinctly about the scope of Human Resource Management as it is rather wide and far-reaching. However, for purposes of convenience, the scope of HRM can be divided into three different segments: Personnel This pertains to recruitment, training, man-power planning, posting, performance appraisal, sustaining employee morale, transfers, promotion, disbursement of wages, retirement benefits etc. Welfare This relates to providing proper work conditions, leave, medical facilities, canteen, rest rooms, workmen safety, social security, transport, etc. Industrial relations This is a highly responsible and sensitive area and includes interacting with the unions, addressing grievances, disciplinary proceedings, dispute settlement, compliance with statutory requirements etc. Challenges Managing human relations is becoming increasingly difficult and challenging. It is part of HRM to ensure that employees stay motivated all the time and the productivity is continually enhanced. With industrial development and the ushering in of global economy, there has been a tremendous growth in job opportunities and it is becomingly increasingly difficult to retain talent. Thus, understanding the scope of human resource management in a diversified economic environment becomes extremely important and this scope helps in setting an all round, dynamic management system. HRM must focus on coping up with increasing employee expectations, changes in employee lifestyles, impact of rapidly advancing technology, shift in government s economic and labor policies, demand for workers participation in management and downsizing the employee strength to remain competitive in business. In short, HRM must ensure identification and reconciliation of individual employee s goals with the objectives of the organization. Global Impact The two key result areas of HRM are - personnel management and development activity. However, most HR managers tend to focus too much on personnel management and pay scant attention to developmental activities. With the advent of global economy, HRM must bestow serious attention to developmental functions. HRM must address some of the pertinent questions with regard to human resources from a global perspective. Employees must be trained in multiculturalism and the ability to interact with foreign associates.

HRM must accept responsibility for creating revised methods of management systems as many of the fundamentals on which management policies were earlier based are now proving to be outdated. Foreign competition and international trade have compelled HRM to train and reorient the employees to become more global-minded. Human resource is today perceived by many corporate houses as an invaluable asset that needs to continually developed and well preserved. Employees must be made to develop a sense of involvement and identify themselves with their company s core philosophy and stated objectives. For optimal utilization of employee strength in the organization, it would be beneficial to introduce the concept of six sigma into the HRM strategy.

WHAT IS HUMAN RESOURCES PLANNING?


Human resources planning refer to classic HR administrative functions, and the evaluation and identification of human resources requirements for meeting organizational goals. It also requires an assessment of the availability of the qualified resources that will be needed. Human resources planning should be a key component of nearly every corporation s strategic business planning. To ensure their competitive advantage in the marketplace, organizations must implement innovative strategies that are designed to enhance their employee retention rate and recruit fresh talent into their companies. Effective human resources planning strategies are those that include having sufficient staff, with the right mixture of talent, and who are in the appropriate locations, performing their jobs when needed. It moves beyond the traditional role of human resources as primarily an administrative control function. In today s corporate environment, it is viewed as a valuable component for adding value to an organization. Both employees and the company will often realize many benefits of planning over the long-run. In uncertain business settings, the significance of strategic human resources planning can become obvious very quickly. A company that reacts to circumstances by cutting staff as a measure to reduce short-term overhead can create unwanted repercussions. What initially looked like a smart and necessary move to economize in lean times can end up costing the company much more in the long-run. The resources that will be needed to subsequently recruit, hire, and train new employees may well exceed any short-term cost savings. Forward-looking human resources planning typically anticipate future staffing requirements. It can help organizations avoid cost errors. Strategies are formulated to not only anticipate their needs over time, but to consider optimal solutions for the long term and under challenging economic conditions. This approach minimizes the chance of short-sighted and reactive choices being implemented by decision-makers. Organizations with a plan in place, and a keen understanding of their long-range objectives, may instead decide to weather the economic storm and keep trained, talented, and dedicated staff in place for the inevitable business uptrend. Linking human resources policies, systems, and processes with a company s overall strategic planning and practices can have immediate advantages. Along with providing the company a road map for forecasting their staffing demand, effective human resource planning documents the talents and skills of the people who are in place. It also considers what current skill set and abilities are required to meet future needs and any new capabilities and talents the company may need to recruit and hire in the future.

HUMAN RESOURCES STRATEGIC PLANNING ALLIGENED WITH BUISINESS STRATEGY


Is an HR action plan necessary? Human resources play a key role in attaining a business's mission. Thus, if sales and marketing departments present management with a strategy to meet a goal, then a human resources strategic plan should be created to help meet that goal. Emphasizing the Role of the Human Resources Department In providing explanations about the concept of human resources strategic planning, we will also put emphasis on the importance of human resources management in project planning. Many employees who became victims of downsizing in the recent past regard the HR department as useless and merely put in place to move the employees around like pawns on a chessboard. If the main strategist makes a wrong move, then they are taken-off the board as like a dispensable object. This, in a way, is true because downsizing is a result of business strategies that failed, and layoffs have been regarded by employees as part of those failed strategies. However, that was a dark era in the past and lessons have been learned. Human resources managers are now tasked to prepare HR action plan to support the company s business strategy. In order to do this, HR management should also perform its own human resources strategic planning by way of pencil-pushing and brainstorming. That way, employees as human resources have a clear idea about the goals they are expected to achieve. They will have clarity of perception about their roles in attaining a common goal for the entire organization.

Formulating Human Resources Strategies and Developing the HR Action Plan To make this discussion more interesting, we will go about it as if we are in the process of brainstorming for human resources strategies in order to come up with our HR action plan sample. 1. Establish the Company s Vision and Mission 2. Understand the Executive Summary of the Business Plan 3. Know the Business Strategy: 4. Establish the Objectives of the Human Resource Strategic Planning Know the company s business goal and the exact ideas on which you re planning. Some companies incorporate both vision and mission into one single statement or paragraph, while others create yearly mission statements in line with their business strategy for the year. As you go about gathering ideas and developing your plans, understand these three basic principles to observe
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Formulate strategies that are aligned with the core values and the core purpose of the company s vision and missions. Human resources are not just workforces to mobilize. They are real people with personal desires and ambitions, which is why they went through years of education and training. Now it s up to the human resources department to recruit individuals whose interests, competencies and capabilities are attuned to the core values and purpose of the company. Nonetheless, the department is not expected to be always accurate in the recruitment assessment, which makes it important to keep assessment programs part of the staffing strategy. Every employee desires to become a part of a business organization that is well-organized, which they could perceive as soon as they submit their applications for the recruitment process. They will experience this as they undergo the training initiatives and benefit from this through management s performance. The best part about an organized company is that the compensation being afforded to employees is paid as a form of recognition for their contributions.

HR planning has four components: 1. Acquisition Manpower planning to recruit right personnel for the right position at the right time. All activities preparing job descriptions, salary negotiations, making an offer etc. fall under this.

2. Training and Development Training is an ongoing process in the employee life cycle. Right from conducting Induction training to mentoring, coaching and grooming for higher roles is the responsibility of training. As a trainer you must note that in absence of correct recruitment practices, training will be a very tedious task. Hence a trainer must understand the job description prepared for recruitment and compare that with the skills required for the next level for the employee. Now the gap between these two levels is what needs to be addressed through various forms of training. 3. Motivation Maintaining the morale of employees is a very delicate job and HR has to accomplish it in order to keep attrition levels in check and satisfaction level high. Equal focus on both hygiene and motivational factors needs to be given in order to maintain it. Some companies think conducting pep talks and trainings with motivational content can do the trick. But as a training professional, it's your job to understand and convey that this is just the tip of the iceberg. The actual factors directly affecting motivation cannot be addressed by such training programs. 4. Maintenance This is an ongoing process again which ensures company health during difficult times. This may mean retraining, redeployment, job rotation, transfers or even downsizing sometimes. Robust maintenance system works like a buffer to safeguard company interests. The interdependence of these four pillars of HR planning is essential for any training professional to

understand. Like HR planning, training is also a strategic process which cannot Be planned only in short term. Like my first boss used to say, "Don't think what will happen if You train and they leave. Think what will happen if you don't train and they stay!"

STEPS IN HR PLANNING
The steps for effective HR planning encompass demand forecasting, supply forecasting, audit, reconciliation or affecting a demand-supply fit, and control. Human resource planning is a systematic analysis of HR needs to ensure the availability of the correct number of employees with the necessary skills at the right time. The increased competitive nature of business that makes workforce flexibility an imperative need has raised the importance of human resource planning. Demand Forecasting The steps to HR Planning start with forecasting the number and type of employees needed in the future. This requires a good understanding of the internal and external environment of the enterprise. The major aspects of the internal environment that affect HR Planning include short-term and long-term organizational plans and strategies, and the status of the organization's human resources. The major aspects of an enterprise s external environment that impacts HR planning include the general status of the economy, developments in technology, level of competition, labor market trends and regulations, demographic trends and the like. For instance, an organization planning to launch a new product would require additional marketing staff, and an organization looking to open a new branch would require more office staff. An organization looking to close down unprofitable branches might look to retrench workers. Similarly, technological developments might prompt the organization to shift to reliance on fewer numbers of technically skilled workers rather than depend on a large pool of manual labor. Correct forecasting of human resource requirements contributes significantly to the competitiveness of the enterprise. Organizations forecasting more workers than required retain surplus or under-utilized staff, and organizations that fail to grasp the full extent of human resources required find themselves overstretched and unable to seize opportunities. The two major methods of forecasting are judgmental methods such as Delphi technique or managerial estimates, and various mathematical models such as time series, personnel and productivity ratios, regression analysis, and the like.

Inventory Analysis and Supply Forecasting The second step in HR planning is inventory analysis or keeping track of the current employees in the organization to determine the extent to which this meets the forecast. The HR inventory analysis entails
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Skill inventory, or keeping track of the number of employees, and the age, locations, qualifications, and skills of each employee to determine the specific role each employee would fill in the short term and long term Forecasting resignations and recruitment and understanding their impact on the skill inventory levels Forecasting leaves, transfers, dismissals, sabbaticals, prolonged illness, and deaths of employees and their impact on inventory levels

The ways to forecast the internal supply of human resources include methods such as Markov analysis, transitional matrices, replacement schedules, succession planning, and the like. Audit The third step in HR planning is audit, which includes reconciling inventory with forecast through a systematic analysis of demand and supply forecasting, and identifying areas where shortages and surpluses exist.

The audit phase also involves, among other tasks:


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Identifying reasons for resignations, the cost of such resignations such as recruitment and training costs of new hires, cost of lost experience, skills and knowledge of the departing employee, and the like, and devise retention plans to retain key talent, if required Review the effectiveness of the recruitment activities, training and development initiatives, career planning exercises, succession planning, and other interventions

Reconciliation The next step in HR Planning is developing action plans to bridge the gap between forecast and supply. The various alternatives include:
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Strategy to recruit new employees Retrenchment of downsizing strategy to shed excess workforce Training and Development plans to right-size the workforce Career Planning and Succession Planning to identify key personnel Changes in work regulations such as timings, overtime policy and the like

The basic considerations when undertaking the planning process is compliance and impact of labor legislation. Laws that govern overtime and retrenchment for instance can have a significant impact on the strategy

adopted. The other consideration is the availability of resources such as financial, physical, and technical for implementation of the plans. Once approved, such plans become part of the company s strategic objectives. Strategic HR Planning entails aligning such HR Plans with the overall strategic goals of the organization. Control The last step in HR Planning is monitoring and controlling implementation of the HR plan. This entails ensuring implementation proceeds in accordance with the plan and taking timely course corrections. The external and internal environment of an enterprise always remains in a state of flux, and a good HR Plan incorporates mechanisms to make timely revisions in accordance with such changes.

The HR Action Plan Sample (Strategies) The Recruitment Strategies 1. To write a comprehensive job description for each of the staff categories described in the Human Resource Strategic Plan. 2. To research the best qualifications for each job type, based on the demand of their job functions. However, the core value and the core purpose of the company as well as the store s mission can be best fulfilled by qualifying only those who demonstrate a great love for children in all job categories. This can be manifested by way of recommendations, family background, past experiences and actual demonstrations. 3. To recruit our applicants from those recommended by our network of associates and business contacts as the best source of suitable applicants who will be chosen to fill-in the professional positions; namely: Store Manager, CMO, Store Merchandiser, Accounting Technician, Credit and Collection Officer, as well as Payroll Master. 4. To recruit college undergraduates seeking for internships as K12 teachers, teacher s aides, or teacher s assistants to fill-in the CSR-DP, CSR or Cashier positions. 5. To recruit high school graduates with satisfactory academic performance records and backgrounds plus commendable work references as babysitters or caregivers from ages 16 to 21 years old to fill in the CSR-DP or CSR positions. 6. To recruit high school graduates, from ages 16 and above, with satisfactory performance records and commendations from referrals, to fill-in the positions of stockroom personnel and cleaning crew. 7. To research and formulate interview questions that will elicit answers to show consistency of information about the applicant s background, work experience, recommendations, know-how and genuine understanding of the company s core values and purposes.

8. To match their test scores with the industry metrics for the relevant job position. 9. Find out from those who were extended with job offers, the reasons why they deemed it best not to accept the company's employment offer. 10. Ensure there is diversity in the CSR-DP and CSR staff recruited. The Orientation and Training Programs 1. To plan an orientation seminar that will discuss the company s business vision and missions, the company s core values and purposes, the employment and termination policies, handbook overviews and FAQs, and the company s position as an employer-at-will. 2. To conduct a personality seminar handled by a professional fashion design consultant, who will give advice about the style of dress and make up that would suit a family-friendly or kid-friendly environment. The ideas or recommendations should be aligned with the store s rainbow theme. The consultant should also be able to impart the proper decorum, the manners to exhibit and language to use in front of children. The objective is for parents to see the company s store personnel as models of good behavior, to positively influence their children. 3. To conduct a workshop or seminar on how to soft-sell or to make a sales pitch in a way that will not turn-off the parents. Some parents might get the notion that they are being pressured by their children into buying something for which they are not ready every time they visit. Make it a point to invite speakers who could demonstrate how this can be done effectively. 4. Conduct a seminar or workshop handled by a daycare operator or an overseer of a cruise ship fun center for kids. Give the entire store personnel ideas and techniques:
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On how to keep the children relatively agreeable with the store rules, On how to promote socializing among the young ones, and On how to keep them happy in their thirty-minute stay in their respective play areas.

5. Invite a speaker with a genuine knack for humor, to give tips on how to always see the brighter side of life. The objective is for the staff to maintain a bright disposition while working within the store premises to avoid creating an atmosphere where short-tempers could flare up. The Assessment Programs 1. Every new rank and file recruited will be evaluated each month for their progress and improvement to let them know if they are performing according to the company s core values, policies and the basic on-board training. It will also include an offhand interview on how they see the company, the store operations, the customers, the products, the role they play and the problems that hinder their improvement. 2. The rank and file performance will be given a formal rating every six months -- this will be the basis of their salary increments.

3. The supervisory or managerial positions will be assessed every 6 months and be asked about their opinions on how management can further improve its selling system or about the existing and potential problems they see on how the store is being run. 4. An employee survey about their perception of the company s employment and operating process will be conducted every 6 months. The Compensation, Benefit and Awards Program 1. Every new hire will be compensated with the basic wage pay rates according to industry standards. 2. All employees will have additional meal and transportation of $500 added to their basic wage but will be prorated according to the number of days or hours that the employee reported for work. 3. All rank and file store employees will receive additional pay in terms of profit-sharing every four months, based on the quarterly financial statement reports and the employee profit-sharing plan, to which:
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Each CSR DP and CSR will be identified in every individual sale they make and earn sales commissions for the total amount of all items sold individually. The CSR-DP or CSR with the highest amount of sale for the quarter will be awarded with a custom-made commemorative Plushie Soft Doll. CSRs with no credit for individual sales and the store personnel handling administrative functions, will receive profit shares of the net income computed at a flat rate.

4. The managerial and supervisory positions will receive compensations, benefits and profit shares based on the employment contracts to which they agreed during employment negotiation and acceptance. 5. Sick leave and vacation leaves will be according to the FMLA but management maintains an open mind about leave requests that stem from dire or emergency reasons, as long as company policies are observed. 6. A Best CSR-DP , Best CSR Employee and Best Store-Support Provider will be recognized and be rewarded with commemorative and cash awards yearly. Corporate Reorganization during Promotions, Resignations or Terminations As part of human resources strategic planning, employees who have elevated their educational and competency levels and who will seek for promotional advancements will be provided with assistance in case the company has no available position. The company will include their resumes in the pool of human resources for recommendation to our network affiliates and associates. However, actual transfers shall only take place after the replacement has been trained by employees vacating or moving out of their job positions. This is to allow for proper reorganization. Resigning employees will have to give at least one month notice prior to actual date of resignation to allow for proper restructuring or reorganization.

Conclusion of the HR Action Plan Make a conclusion statement to serve as a reiteration of the company s business vision and mission: The company s vision of becoming a community-friendly store can only succeed if everyone who works for the company is aware that they need to exemplify the core values of fostering family and social bonding. That way, everyone will reap the benefits of working together for a common good.

WHAT IS THE DIFFERENCE BETWEEN HUMAN RESOURCE PLANNING AND SUCCESSION PLANNING:Scope Human Resource Planning (HR Planning), also known as manpower planning is the process of estimating the present and future demand of personnel required for the company s operations, and to attain targets. It also details the how and when to acquire such personnel. Succession Planning is the process of identifying critical positions in the organizational chart and preparing employees below or parallel to such critical positions in the hierarchy to take over when the incumbent leaves the critical position due to resignation or any reason. Approach The major difference between human resource planning and succession planning lies in their approaches. Human resource planning (HR Planning) concerns itself with the quality and quantity of the entire workforce whereas succession planning concerns itself with the competence of a person in a specific post. HR Planning is a macro-level approach dealing with the workforce in general, aiming to ensure that the organization has the required number of personnel with the required skills at the required time. It is a straightforward cut and dry approach and does not concern itself with any specific employee on an individual basis. Succession Planning is a micro-level approach concerned with individual employees on an individual basis, for the eventuality of the incumbent leaving, which is still uncertain and indefinite. Methodology Another difference between human resource planning and succession planning is seen in the selection methodology used by each. HR Planning bases itself on: 1. The existing operations of the company, and estimates the required workforce through methods such as time study, case study, and others.

2. business plans, and forecasts human resource demands by various forecasting techniques and statistical tool. Identifying critical positions for the succession planning exercise is subjective. The criteria for selection of candidates to groom as successors depend on various factors such as competence, behavioral skills and attitudes, tenure with the company, political equations within the company, and the like. Such standards are usually subjective. The process of actually implementing succession planning is however scientific and include assessment centers, empowerment, mentoring, and various training and development initiatives Time-Frame HR Planning usually takes places before a major recruitment process such as seasonal hiring or following a major corporate restructuring or decision to right size the organization. Companies without such disruptions usually review their HR plans annually in a bid to right size the organization based on actual demand. Succession Planning is a more continuous process aimed at enhancing the competence of the personnel selected to succeed incumbents. The process of identifying a new employee to groom as a successor starts when one of the personnel marked as a successor moves into the earmarked slot or leaves. Significance HR Planning aims at ensuring that the organization functions smoothly with the right number of personnel. A shortage of employees results in the inability to meet corporate goals, failure to exploit opportunities, poor customer satisfaction, and lower profits. The presence of excess personnel leads to the loss of productivity, process inefficiency, and unnecessary wage bills. Succession planning aims to prevent disruption of organizational activities or collapse of systems and procedures by the absence of key personnel in key positions. It tries to mitigate the adverse affects of the resignation or loss of key employees. Both HR Planning and Succession Planning are of critical importance to any organization, and organizations that neglect either of these activities invariably face severe human resource issues. The process of HR Planning might be carried out by HR department, but its understanding is important for employees of all functions. HR Planning by default is strategic HR planning (though some authors distinguish between the two) because when it comes to planning for people as a resource; it is unfair to talk only in short term. Training being an integral part of HR process, it is essential for trainers and training managers to understand how the training function fits into the larger picture. In many companies, training department works in isolation, which interferes with the smooth functioning of effective hr planning process

4. JOB ANALYSIS

Introduction:

Job analysis is the basic and important part of human resource management (HRM). It covers the job analysis activity under the sub process of human resource planning. Job analysis is conducted after work-force analysis and availability analysis (Hellriegel and Slocum Jr. 1993). It also indicates what activities and accountabilities the job entails. It is an accurate recording of the activities involved. Every job is multifaceted and there are several methods in preparing job analysis. Most organizations prepare job analysis, statements of performance and expectations of employees at floor and at the managerial level. The content of these statements varies considerably from one company to another, depending in large part on the uses to which the information is put. People performing a job may be observed and questioned. Various training manuals and other job-related materials may be made available to job holders, supervisors and other who is knowledgeable may be interviewed or asked to complete written questionnaires. On occasion, photographs and film of the work,

examination of tools and equipments, and actual performance of the job by a job analyst may also be used. If the resulting descriptions are appropriate and up to date, descriptions can be helpful in reducing rile ambiguity and conflict. Written job descriptions establish a clear standard against which job behavior may be gauged. Descriptions constitute a script that organizational players can learn, so they do not have to ad-lib their lines. Organization charts that outline the relationships among managerial roles in an organization may perform the same function. Importance: Job analysis is a term used by human resource managers for the process of collecting information related to job contents. Schuman (1994) compared tasks performed on the job with knowledge, skills and abilities of the jobholders. The information provides job description that becomes summary reports of each job in the organization. Job descriptions are the basic inputs to job evaluation, which is used to assess the characteristics along with the working conditions of each job by assigning numerical points to the duties, responsibilities and efforts required for each job. This numerical points or score measures the relative value of each job to the organization (Schuman, 1994). The next step in the formal procedure is to set pay attached to job points. This is frequently done by conducting and analyzing a pay survey of the relevant labor market. To do this pay survey and analysis, the organization identifies a set of benchmark jobs. These benchmark jobs are jobs within the organization that are common in other organizations. The survey may identify parameters for pay fixation or may determine pay scales. The survey may determine pay scales in other companies also. The organization may also find methods of fixing pay for new jobs (See Heneman 1980, Milkovich and Newman 1987, Hartman, Roosand Teriman 1985, Killingworth 1985 and Gunderson 1989). Job Analysis in Pakistan: In western countries human resource management (HRM) research has shown a shift from micro- analytical approach (individual performance) to a macro-strategic (organizational performance) perspective but in a country like Pakistan micro level approach is yet to be analyzed. Distant from the traditional personnel role, human resource management (HRM) has recognized new roles in terms of employee champion, change agent and strategic partner (Ulrich, 1997).Linking HRM practices to employee job performance is unexplored and required a great attention particularly in the context of Pakistan public sector organization. Pakistan is a developing country in the South-Asia region. Apart from having ample natural resources, Pakistan is widely known as an open and forward thinking country, willing to test with innovative management practices and development models that will assist it in seeking an effective diversification of its economy. With invasion of multinational companies over the past decade, particularly under the umbrella of regulatory authorities, Pakistan has achieved an inspiring mix of domestic and foreign companies. The growing competition in a large market (with a little over 175 million population) has made both domestic and foreign companies intensely productivity cognizant. This, in turn, has generated a strong interest and enthusiasm among organizations, particularly in public sector, to search vigorously for the best management practices in all fields of HRM to improve their productivity and overall performance. Thus, Pakistan offers an appropriate setting to examine how a basic HR practice, such as job analysis, which has received considerable attention in Western countries as a useful HR planning tool, affects employee job performance in a developing country.

Job Analysis Principles:

The purpose of the job analysis is to identify the experience, education, training and other qualifying factors, possessed by candidates for specific jobs. It can be also used to identify candidate s qualification or their evaluation, referral and selection process. There are two key elements of a job analysis. 1. Identification of Major Job Requirements (MJRs).

2. Identification of knowledge, skills and abilities (KSA). KSA required accomplishing each MJR. A number of fundamental principles concerning jobs and the process of analyzing them have been identified by Duecento and Robbins (1996). These principles are: y y y y y y y y All jobs can be analyzed and recorded. Job analysis can enhance communication. The process of analyzing jobs can easily accommodate changes. The process can be clear enough so employees and employers can understand and contribute to the process. The process can be designed so that all major personnel decisions can be based on the resulting data. Skill, knowledge and ability can be defined in operational terms (applications of skills, knowledge and abilities may be identified) Job analysis based on observable behaviors and work products contributes to efficient HRM. Nearly everything that needs to be written to explain the work of a job is already written.

Job Analysis Information: As HR activities grow in scope and complexity, many duties, such as recruiting and compensating, are delegated to the HR department. But HR specialists do not know the details of jobs as well as operating managers do. Knowledge about jobs and their requirements must be collected through a process known as job analysis, in which information about jobs is systematically collected, evaluated and organized. Methods of Job Analysis Cascio (1995) highlighted that there are different number of methods used to study jobs. At the outer set it is important to note that no one of them is sufficient. Some combination of methods must be used to obtain a total picture of the task and physical, mental, social and environmental demand of a job. Job analysis is just that-analyzing the task you need done in order to complete a job. It does not have to be difficult or complicated. Job analysis is the process of looking at exactly what a job entails in order to determine the necessary job qualifications. Through the job analysis, a job s skills, knowledge and ability (KSA) can be defined in operational terms. This is essential if the job analysis data are to have any utility whatever. For example, if KSA s are to be used in performance assessment, they must be operationally defined. y y y Knowledge is to know how to perform the work but not having performed it. Skill is having performed the work Ability is having the physical, emotional, intellectual and psychological ability to perform the work but neither having done the work nor having been trained to do the work.

Conclusion: To conduct job analysis effectively, managers have the obligation to keep all the job information up to date. It is vital that they report changes in the organization; job assignments and methods of work to ensure that classification are kept current. Even when staff specialists evaluate jobs, line managers still have the basic responsibility of reviewing both the job analysis and the result of job evaluation. This review carries with it the authority to approve or appeal. Line managers have the basic responsibility for making pay decision. Decisions must be made within the framework of policies, practices, techniques and controls. Clearly, the individual supervisor is involved in interpreting compensation policies and applying them to many individual situations. Management of job analysis, job evaluation and compensation administration, like many other fields, requires a never ending search for excellence.

5. Employee Pay Management System [EPMS]:


Your employees are the core of any company and the main factors in determining a company s success or growth. This makes it very important to invest in effective and well planned Employee Pay Management System (EPMS) for business that will help to create a good management system.

EPMS Properly Manage Your Employees Salary Management of the salaries of employees is determinant to the company as their contribution often decides the value of the business. One of the main features in Employee Pay Management System is time tracking for employees. Effective time tracking mechanism saves both time and money for the organization. The aspect in any given company is the payroll structure devised for the employees. Many industries have numerous department and wide range of designations and accordingly the pay structure changes from one position to another. Usually for a company with more than 25 employees, good payroll system is feasible. Skill-based pay systems set compensation levels for individuals based on the valuable skills they possess. The philosophy behind skill-based pay decisions is the fact that employees cannot increase their productivity and efficiency simply through years of experience with the firm, although experience does play a hand in employees becoming more valuable. Instead, these companies believe that employees with more educational achievement, who continually learn more and grow in their professional competencies, contribute more to the organization over the long term, making them a more valuable investment. Educational achievement does not have to refer to university degrees; it can also refer to completing training programs or achieving special certifications.

EPMS Remotely Control Your Workforce Another most important advantage of Employee Pay Management System, by which you should look into before choosing the one to select, is that it gives you capacity to keep track of your company s workforce from any part of the world. Organizations that are spread across geographical locations with their offices are most benefitted by such a system. You can track and manage any employee with such system. The system records the time spent by each employee on an assigned project and the exact skills used. These records form basis on which appraisal or promotions are considered. Such a system can cut the costs of management and increase the profit margin of the company by taking of some burden from the organizations funds. Employee Pay Management System is flexible and can be easily adapted to

the working frame of any company. Overall business development depends on effective management of employees to large extent. While many workers perform very hard and earn salaries, they find it very difficult to sustainably manage these salaries. As a matter of fact, most exhaust their salaries and broke instantly just as many even go broke before they collect their salaries. Most live on credit while most are neck deep in debts and may never come out of the problem as they do not even have a clue about the way out. Minimum Wages Board of Pakistan has decided to increase the minimum rates of wages by 30.43% w.e.f. 01st July 2008 of all categories of workers (Skilled and semi skilled) of fifty one different industries as specified in the Labor and Human Department Notification No: 6-29/01 dated 7th August 2007 published in the official Gazette dated 15-8-2007. Most people know how much their take home pay will be every month, which makes it easier to budget. Having worked out how much your outgoings are, you can then look at where they can be reduced.

EPMS- Approaching the Employee Probably one of the most challenging prospects of Employee Pay Management System is deciding how to approach a competent employee. It can feel very intimidating to tell a company how much you want them to pay you. But this task is easier if you keep in mind that you're simply expressing your desire to be paid based on your skills and ability to perform. So when is the right time to make the approach? If you're in the process of delegating a new position. However, if you're looking to ask for a raise with your current employee, you'll want to make sure that you've explored the reasons that you feel it's time to increase your pay (years employed, responsibilities fulfilled, etc.). Companies offering skill-based pay are more likely to offer pay increases for educational achievements and new certifications acquired during employment. These companies may also feature in-house training programs that offer pay increases for employees who complete specific programs, since they are assumed to possess a wider range of valuable skills after completion. Companies that rely on job evaluations are more likely to base pay increases on annual performance evaluations, moving employees up the salary ladder until they reach the maximum level for their job classification, after which time they must look for opportunities for internal advancement to positions with higher pay grades.

Employee Pay Management System is always highly recommended for Government and Private organizations because of its benefits and features for processing business and companies at the management level.

Global Trends in Managing pay Globalization takes place through a foundation of human capital. Yet in many ways, the human capital needed for globalization is lacking. Progress is required in important areas such as elevating more women to leadership positions and having talent strategies that incorporate diversity. Taking a longer-term view, early childhood interventions are needed to ensure development of tomorrow s workforce. For companies that are global today, it is not effective to manage workers the same in all countries. Managers need to understand cultural differences and adjust their styles, communications, and rewards to fit within each culture. What is the competitive market price for a particular position? It s a simple question. If you work in Compensation, this is what you do. And if you re in the US, the survey sources you can call upon are numerous and well-stocked with participating companies and benchmark matches the blessings of a large country. In fact, it is a common practice to segment the data (report separately) on the basis of industry, revenue size, or geographic region. In some instances you can further refine your analysis by operating budget, staff size or even years of experience. For those accustomed to such robust analysis it can be a real wake-up call when asked to conduct a similar analysis for operations in another country. Suddenly your content-rich environment has disappeared, and in its place you find that the availability of good information can no longer be taken for granted. Now what do you do?

Your large country database is gone. Instead, you face a limited selection of survey sources and each offers only a fraction of your normal participant count a far cry from business as usual. Such is the key challenge when pricing international jobs the limited number of companies included in surveys, even by the major vendors. For example, Mercer Netherlands has 81 participating companies. So it is not unusual for a market pricing analysis to include only 4 5 matches but is that representative of common practice? If you re the one on the asking end of the original question, let me share the challenges your analyst is likely to encounter. Impact of Reduced Participation


Limited industry segmentation: Reported data will likely cover multiple industries, with limited or no segmentation. If you re in either a high or low paying industry, surveys will provide inflated or discounted information. Hard to segment by revenue size: To the extent that larger companies pay more than smaller you lose that distinction as well. This can be especially problematic if you re a small company. Global responsibilities vs. strictly national: The distinction is often blurred between national, regional and global responsibilities. Combination jobs not well represented: You will find yourself matching against jobs close to your own, just to gain a feel for pay levels. If your job content varies from benchmark descriptions, reported data might not capture such idiosyncrasies. Poor matches and / or no data when less than 5 respondents: Surveys tend to provide an n/a when they do not have enough participants. When you start with limited companies it s not unusual to find unreported jobs. Forget Regional variations: While it is often the case that certain geographic regions have higher pay levels, the reported data is usually national. You may assume that participants are in the higher paid region, at your risk.

What to do? Frustrating, isn t it? You can t very well throw your hands into the air, complain about poor survey quality and move on to something else. The limitations are there and you have to play with the cards you ve been dealt. Management is waiting, wondering what is taking you so long. Working with limited resources is a test. Your challenge is to balance an understanding of the subject position, the industry and the vagaries of limited data points in order to determine which figure best represents your position s competitive value.

To succeed you must utilize subjectivity and your professional judgment to consider the available data and gauge which figures best reflect the job under review. The correct answer will no longer jump off the page at you. Compensation has become an art, not a science.


To improve your matching, consider either the 25th or the 75th percentiles instead of the median or 50th percentile to reflect your position: this can be effective with poor matches, or concerns that the reported job is either larger or smaller than your own. You may have to add or subtract from a benchmark job to gain a more appropriate figure for your position. For example, if your job is a VP but the survey matches stop at the Director level (or converse), you may have to adjust up or down to create a better guesstimate. Note: in such a case don t forget that the incentive percentages will likely differ as well. There is no formula in making adjustments, but changes in organizational level are usually around 15% 20%. Within-level description changes are usually around 5% 15%. If dealing with only a few positions you might have greater success by individually pricing jobs through a vendor s database of multiple surveys, government sources and local surveys. Vendors like ORC, Birches Group and a few others offer this select service. Be careful of the arithmetic exercise (averaging averages, inappropriate matches, assuming numbers, etc.) that delivers a figure you cannot validate later. Caution: a number is remembered, while often the qualifiers that follow are forgotten. Make sure that you document such concerns before providing specific data.

All this subjectivity means that your judgment might suffer from more skepticism, even criticism, as you cannot simply point to a survey page and say, there it is. Does all this subjectivity ruin the value of your analysis? Not at all, as long as you inform management about how limited survey resources have impacted your analysis. They expect an answer to their question (market value?) and you need do the best that you can with the resources you have available

Recruitment Selection & EEO


getting the right person for the job is the most difficult task that many employers (esp. the HR professionals) face today. The secret of hiring the correct candidate is identifying the right fit between the individual, job-role and the company. Here comes the role of assessments. Assessments are crucial for right-fit hiring at every conceivable sourcing point including campus hiring, consultants, employee referrals, job fairs etc.

Recruiting Leader of the Year, Best Use of Metrics, and Best Recruiting Process:

Dan Hilbert, Valero Energy

What Dan Hilbert and his team at, Valero Energy have accomplished will forever change the strategic options that recruiting directors must consider. They have developed what may be the world's most strategic staffing approach, one that emphasizes using metrics to refine "talent pipelines" to produce a talent supply chain. Best practices:
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Predictive Labor Needs System. Algorithms analyze historical data that is combined with data on planned capital projects to predict future talent needs as far as three years' out. Automated Sourcing. Labor needs are automatically communicated to defined sources (both internal and external) based on each individual source's efficiency (cost, time) and effectiveness (quality of hire, reliability). Candidate Mining. Rather than have recruiters crawling through job boards and posting job advertisements, web spiders are programmed to crawl, retrieve, and upload candidates into the applicant tracking system based on both current and projected needs. Advertisements are automatically broadcast as part of the automated sourcing approach. Multi-Dimensional Performance Monitoring. The system relies on metrics at four defined levels to monitor system health and performance, as well as to diagnose problems or issues that arise. Integrated Processes to create a talent supply chain. Predictive Modeling functionality enables the effective use of both short/long term sources. University Recruiting that leverages teaching assistants as talent scouts on targeted campuses, allowing Valero to secure interns and new grads prior to on-campus career events. Best Corporate Careers Website: Deloitte

Deloitte has long been a leader in both recruiting and retention, and now it has broken new ground by building a global careers website designed from the ground up to focus on the candidate experience. Unlike most corporate sites, which are dull and serve as nothing more than "front-ends" to applicant tracking systems, the Deloitte solution uses cutting-edge marketing approaches and the latest technology to serve candidates

consistently around the world. Quick facts:


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The site is a living example of "a global strategy executed locally." It leverages both localization and personalization engines to dynamically deliver content relevant to the site visitor. It is a single site supporting more than 80 country-specific recruiting strategies. Deloitte delivers a consistent brand message around the world in 10 languages.

Best practices:
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Target Audience Research. Deloitte conducted extensive usability research with two external candidate groups students and experienced professionals to help create the original design specifications. Ongoing surveys and focus groups with candidates sourced both inside and outside the organization help to guide refinements and changes. Use of Localization and Customization. The use of these two technologies ensures that candidates are presented with information unique to their specific needs. Extensive research is conducted to help determine what type of content each target demographic needs/wants. Employment Brand Measurement. The messaging of the site is adapted continuously based on input from candidate surveys and third-party market research which details how Deloitte is perceived in the talent market. Localized Content Management. Deloitte custom-built a content management tool to allow local HR professionals who are not technical experts to manage local content. Robust Analytics. Because the global site is truly one site versus a portal that forwards users on to local sites, all movement throughout the more than 7,000 web pages can be monitored and analyzed. Multiple Presentation Formats. Because the site is powered by a robust content management tool, the same type of content can be delivered in multiple ways. For instance, a day "in the life" story maybe be presented as text, short video clip, or in-depth dynamic video. Web-Based Screening. Candidates who move from the site into the recruitment management application are screened using questionnaires tailored to each position. Introduces an online network for interns.

Best College Recruiting Program: Whirlpool

Whirlpool has redesigned its university recruiting program to ensure a consistent pipeline of mid-level management talent through the Whirlpool Leadership Development Program. Quick facts:
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Global Rotation Programs are developed along functional lines to ensure skill development according to the functions' pre-defined performance criteria. More than seven separate programs exist, covering everything from brand portfolio leadership to global supply chain management. Each Leadership-Program participant receives frequent feedback, a senior-level mentor, a tiered compensation package and a defined career path.

Best practices:
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Identified Employment Brand obstacles that would prevent them from hiring the volume and quality of top graduates that they needed. They then developed a strategy to "call out" negative perceptions, such as those of the appliance industry itself. Leveraged the Brand Identity of Ben Stein, a known and trusted celebrity, to reach out directly to the target audience by including him in all recruitment communications. Designed Highly Visible Recruiting events at target schools that leverage partnerships with local organizations, entertainment venues and elsewhere. Developed a Web-Based Portal specific to campus recruitment that focuses on the candidate experience versus administrative functionality.

Highly Selective Leadership development mentor program. Managers selected to participate as mentors must go through a rigorous selection process and are then monitored closely to ensure that only managers who consistently produce results remain in the program

Most Strategic Use of Recruiting Technology: Hewlett-Packard

Hewlett-Packard has been a pioneer in the adoption of a truly global HR strategy and in using technology in order to transform HR for more than 20 years. In its latest move, HP has integrated all recruitment technologies via the @HP portal to support a global HR self-service model. Quick facts:
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Global Staffing Practices and technologies were streamlined to support a global strategy and consistent staffing methodology worldwide. The approach does provide some degree of flexibility to support variations in staffing approaches and perspectives across geographic regions (Americas, Asia Pacific and Japan, and EMEA).

Best practices:
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Staffing methodology across all four regions is supported by a global workforce planning and staffing leadership team. Specific technology plans exist to drive the use of technology in: - Experienced candidate recruitment - University recruitment - Intern recruitment - Diversity recruitment

Recruitment process in Pakistan Mostly all the organizations are following the same kind of recruitment and selection processes in Pakistan, here we are giving one practical example of HBL as it is the leading bank in Pakistan to make easier for comparison between the global trends of recruitment and Pakistan s share to globalization : Recruitment Process at HBL Meritocracy is an integral part of HBL s recruitment policy. Merit based recruitment process incorporates the principles of equal opportunity and leads to the appointment of the most capable candidate. This ensures openness and transparency, allowing greater confidence in the outcome of the selection process. The merit principle at HBL aims to identify the most suitable person for the job assessed on the basis of the following parameters

The recruitment and selection process starts with employment planning. This process of deciding what positions the firm will have to fill, and how to fill them. Personnel or employment planning embraces all future positions, from maintenance clerk to CEO. Selecting and recruiting process according to HBL The diagram below represents the process on which HBL s selection is based. This gives an overview to potential candidates as to the steps involved in becoming a part of the HBL team. In recruitment process first of all planning session is occurred, in planning session it is determined that which section HBL will have to fill and how to fill. If there is a vacancy of executive job then succession planning is done for filling that vacant place. Analysis of Positions and RequirementsAfter planning it is analyzed that which position is going to be filled and

the requirement is analyze by job analysis. Identify candidates: HBL identifies its candidates by developing the criteria of job description and job specification and acting upon these criteria job vacancy ads are spread through different Medias like newspapers and internet. Outside schemes: HBL uses outside schemes for recruitment which are

Advertising 1. Newspapers (Daily Jung, Nawa-e-Waqt, The Nation, Dawn and Daily Khabrein etc) 2. Trade and professional journals (Aurora Magazine) 3. Internet job sites (rozee.pk)

Outside sourcing of candidates: 1: Sadat Hyder Morched Association works for outsourcing for HBL. 2: College recruitment 3: Employee referrals 4: Walk-ins 1. Finding internal candidates: 1. Job Posting 2. Rehiring former employees Prescreening and short listing: Many candidates apply for job in response to vacancy ads by submitting their CVs. Selection board goes through those CVs and selects those candidates which initially fulfill criteria of selection board. After prescreening selection board short lists the candidates who are considered most suitable for job at initial level on the basis of their resume. Test/ interview: In this process short listed candidates are called for test and interview according to nature of their applied jobs. Selection Interview: Selection interview is conducted for short listed candidates. A selection interview is the procedure designed to predict future job performance on the basis of applicant s oral responses to oral inquiries. Types of test: Generally two types of tests are taken in HBL 1: Tests of Cognitive ability 2: Physical tests Cognitive test abilities consists of 1. Intelligence Tests Tests of general intellectual abilities that measure a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability are intelligence tests. 2. Aptitude tests

Tests that measure specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability are aptitude tests.

Tests of physical abilities Tests that measure static strength, dynamic strength, body coordination, and stamina are physical. Job related to guards and deliverers go through this sort of test. HBL adopts recruitment process as Entry level programs Experienced professionals Campus recruitment Rehiring

Entry Level Programs: HBL s Entry-Level Programs are structured to ensure that you will quickly assume responsibility for concrete tasks and important projects. Rotational assignments across different business units provide a comprehensive and valuable experience in a relatively short amount of time. Experienced Level Program: HBL recruits experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas. HBL s dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities. HBL encourages you to explore this section to find out about current job openings and how to submit your resume. Campus recruitment: As part of HBL s human resource strategy, HBL visits various universities across the country to induct & groom fresh business graduates every year. Enthusiastic and talented youth form the backbone of its banking operations and are nurtured to become future leaders at HBL. Rehiring Former employees: It is an internal hiring source. Rehiring the former employees is the process in which HBL rehires the former employees. But this process is practiced very rarely. Final Selection: After going through all the processes the best candidates according to HBL s selection boards are selected.

Orientation: Just after final selection and before starting of training process orientation is conducted for selected employees in orientation new employees are provided with basic background information about the HBL. EQUAL Employment opportunities: Though the legislation for Equal Employment Opportunities in Pakistan has significantly evolved with the passage of time but there is still a huge gap between its implementation. One of the main reasons for this implementation gap is the lack of awareness of these rights among the employees. You will hardly find employees suing employers for the misconduct or injustice during the employment selection process. The article 25, 26, 27 completely bans the discrimination against in the matter of employment on the basis of race, religion, caste, sex, residence or place of birth. Though there is a portion of employers (mostly multinationals) who have adopted procedures to ensure equal opportunity to some extent but one can easily find the cases of gender biasness where women are not considered equally capable for a particular job. Similarly, minorities and protected group members often face difficulties in getting the jobs of their own choice.

7.Performance systems
Performance process or manner of functioning or operating; "the power of its engine determines its operation"; "the plane's operation in high winds"; "they compared the cooking performance of each oven"; "the jet's performance conformed to high standards"

TRADITIONAL PERFORMANCE APPRAISAL MEASURES There are number of different types of systems for measuring the excellence of employment performance. The two techniques job evaluation and performance appraisal are often provide the rational foundation for a wage and salary system.

Traditional performance systems are as follows; 1. 2. 3. 4. 5. 6. 7. 8. Ranking Person to person comparison Grading Cheaklists Forced choice description Behaviorally anchored rating scales Essay Graphic scales

CRITICAL ANALYSIS Performance appraisal system is always being complex and complicated. But traditional performance measures were too non scientific and inefficient too evaluate properly an employee s performance. Like person to person comparison; if we examine critically every individual is different from other one some people are slow by nature and some are fast and sharp on the basis of person to person comparison how could fair analysis is made?? In My point of view these measures can not reflect the true picture.

GLOBALIZATION IMPACT ON PERFORMANCE MEASURING TOOLS 16 Ways to Measure Employee Performance Performance measurement uses the following indicators of performance, as well as assessments of those indicators. 1. Quantity: The number of units produced, processed or sold is a good objective indicator of performance. Be careful of placing too much emphasis on quantity, lest quality suffer. 2. Quality: The quality of work performed can be measured by several means. The percentage of work output that must be redone or is rejected is one such indicator. In a sales environment, the percentage of inquiries converted to sales is an indicator of salesmanship quality. 3. Timeliness: How fast work is performed is another performance indicator that should be used with caution. In field service, the average customer s downtime is a good indicator of timeliness. In manufacturing, it might be the number of units produced per hour 4. Cost-Effectiveness: The cost of work performed should be used as a measure of performance only if the employee has some degree of control over costs. For example, a customer-service representative s performance is indicated by the percentage of calls that he or she must escalate to more experienced and expensive reps. 5. Absenteeism/Tardiness: Employees performance may be adversely impacted by absences, too. 6. Creativity: An employee is obviously not performing when he or she is not at work. Other it can be difficult to quantify creativity as a performance indicator, but in many white-collar jobs, it is vitally important. Supervisors and employees should keep track of creative work examples and attempt to quantify them. 7. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well aligned with those of the company.

8.

Gossip and Other Personal Habits:

They may not seem performance-related to the employee, but some personal habits, like gossip, can detract from job performance and interfere with the performance of others. The specific behaviors should be defined, and goals should be set for reducing their frequency. 9. Personal Appearance/Grooming:

Most people know how to dress for work, but in many organizations, there is at least one employee who needs to be told. Examples of inappropriate appearance and grooming should be spelled out, their effects upon the employee s performance and that of others explained, and corrective actions defined. Performance indicators must be assessed by some means in order to measure performance itself. Here are some of the ways in which performance is assessed from the aforementioned indicators.

10. Manager Appraisal: A manager appraises the employee s performance and delivers the appraisal to the employee. Manager appraisal is by nature top-down and does not encourage the employee s active participation. It is often met with resistance, because the employee has no investment in its development. 11. Self-Appraisal: The employee appraises his or her own performance, in many cases comparing the self-appraisal to management's review. Often, self-appraisals can highlight discrepancies between what the employee and management think are important performance factors and provide mutual feedback for meaningful adjustment of expectations. 12. Peer Appraisal:

Employees in similar positions appraise an employee s performance. This method is based on the assumption that co-workers are most familiar with an employee s performance. Peer appraisal has long been used successfully in manufacturing environments, where objective criteria such as units produced prevail. Recently, peer appraisal has expanded to white-collar professions, where soft criteria such as works well with others can lead to ambiguous appraisals. Peer appraisals are often effective at focusing an employee s attention on undesirable behaviors and motivating change.

13. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold different positions, are asked to appraise each other s work and work styles. This approach assumes that the team s objectives and each member s expected contribution have been clearly defined. 14. Assessment Center: The employee is appraised by professional assessors who may evaluate simulated or actual work activities. Objectivity is one advantage of assessment centers, which produce reviews that are not clouded by personal relationships with employees. 15. 360-Degree or Full-Circle Appraisal: The employee s performance is appraised by everyone with whom he of she interacts, including managers, peers, customers and members of other departments. This is the most comprehensive and expensive way to measure performance and it is generally reserved for key employees.

16. MBO (Management by Objectives): The employee s achievement of objective goals set in concert with his or her manager is assessed. The MBO process begins with action statements such as, reduce rejected parts to 5 percent. Ongoing monitoring and review of objectives keeps the employee focused on achieving goals. At the annual review, progress toward objectives is assessed, and new goals are set. There are as many indicators of performance as there are companies and jobs. The various assessment methods can be used in combinations. It is important to choose indicators that align with your company s goals and assessment methods that effectively appraise those indicators. IMPLICATIONS IN PAKISTAN First; as trend of HR practices is increased trends of practicing HR functions and it s implications is also increased After getting the right talent into the organization," wrote Gubman, "the second traditional challenge to human resources is to align the workforce with the business to constantly build the capacity of the workforce to execute the business plan." This is done through performance appraisals, training, and other activities. In the realm of performance appraisal, HRM professionals must devise uniform appraisal standards, develop review techniques, train managers to administer the appraisals, and then evaluate and follow up on the effectiveness of performance reviews. They must also tie the appraisal process into compensation and incentive strategies, and work to ensure that federal regulations are observed. Second; formally there used to be some traditional methods of measuring performance as awareness increased need to find out and apply new methods also increased, and in those new 16 methods MBO and

360Degree feedback, Quality, Timeliness and Creativity are most used methods in Pakistan s private organizations. Practical examples of Innovative Pvt Ltd and Mobilink Pakistan on the other hand I have also included Civil Aviation Authority example where Traditional methods are being followed. Third; in overall we can say that in Pakistan trend in adopting new measures in Private organization is more rather then in Public organization. Finally, the manager must resolve the dilemma of developing a performance measurement system flexible enough to respond to changing ideas about what is important to measure, yet stable enough to provide the comparisons over time needed when judging whether the performance experienced in a given year is adequate. TARINING AND DEVELOPMENT Training and development -- or "learning and development" as many refer to it now -- is one of the most important aspects to our lives and our work. In our culture, we highly value learning. Yet, despite our having attended many years of schooling, many of us have no idea how to carefully design an approach to training and development. This topic in the Library provides an extensive range of information about training and development, including depicting how the many aspects of training and development relate to each other. Also, this topic explains how training and development can be used, informally or Formally, to meet the nature and needs of the reader. Learning Through Reflection and Inquiry Numerous driving forces have caused changes in forms of learning and development. Forces include rapid changes that we must keep up with in our environments, increasingly diverse values and perspectives that we must constantly recognize and consider, and increasing competition for resources which results in even less time and resources to attend traditional and often expensive forms of schooling. As a result, there's more interest in learning "on the fly" -- in learning how to learn from our experiences. Learning how to learn requires

continuous inquiry and reflection about our experiences and the feedback shared with others. Continuous Learning Coaching Mentoring Action Learning The Global Qualities of Well-Formed Learning Objectives Objectives are very important tools in the design, implementation, and evaluation of training. Simply put, a usefully stated objective is one that succeeds in communicating an intended result to the learner. A well-formed learning objective contains all of the following elements. Performance. An objective always says what a learner is expected to do and must be measurable; the objective sometimes describes the product or result of the doing (for example to make a presentation, state the actions to take). Words such as state, describe, list, compare, and explain all describe things that people might do. Conditions. An objective always describes the important conditions (if any) under which the performance is to occur (for example with reference to the course notes, in the court environment). Criterion. Wherever possible, an objective describes the criterion of acceptable performance by describing how well the learner must perform in order to be considered acceptable (for example correctly, accurately, according to the Adult Court Bench Book) Developing people and capabilities Many organizations face the challenge of developing greater confidence, initiative, solutions-finding, and problem-solving capabilities among their people. Organizations need staff at all levels to be more selfsufficient, resourceful, creative and autonomous. This behavior enables staff can operate at higher strategic level, which makes their organizations more productive and competitive. People's efforts produce bigger results. It's what all organizations strive to achieve. However, while conventional skills training give people new techniques and methods, it won't develop their maturity, belief, or courage, which is so essential for the development of managerial and strategic capabilities. Again, focus on developing the person, not the skills. Try to see things from the person's (your people's) point of view. Provide learning and experiences that they'd like for their own personal interest, development and fulfillment. Performance and capability are ultimately dependent on people's attitude and emotional maturity. Help them to achieve what they want on a personal level, and this provides a platform for trust, 'emotional contracting' with the organization, and subsequent skills/process/knowledge development relevant to managing higher responsibilities, roles and teams.

Tips on establishing a mentoring service or program me There are very many ways to design a mentoring programmed, whether within an organization, or as a service or help that you provide personally to others. Here are some questions that you should ask yourself. The answers will move you closer to what you seek to achieve: What parameters and aims have you set for the mentoring activity? What will your mentoring programmed or service look and feel like? What must it achieve and for whom? What are your timescales? How will the mentoring programmed or activity be resourced and managed and measured? What type of design and planning approach works best for you? (It makes sense to use a design and planning approach that works for you.) What are your main skills and style and how might these influence the programmed design? What methods (phone, face-to-face, email, etc) of communication and feedback are available to you, and what communications methods do your 'customers' need and prefer? What outputs and effects do you want the programmed to produce for you, and for the people being mentored? How might you build these core aims, and the implied values and principles, into your programmed design? How can you best measure and agree that these outputs - especially the agreed expectations of the people being mentored - are being met. How can you best help people in matters for which you need to refer them elsewhere? What skills, processes, tools, experience, knowledge, and style do you think you will need that you do not currently have? What do your 'customers' indicate that they want in terms of content, method and style or mentoring - in other words what does your 'target market' need?, and what parts of those requirements are you naturally best able to meet? Mentoring is potentially an infinite demand upon the mentor so you need to have a clear idea of the extent of your mentoring 'offering'. Establishing clear visible parameters enables proper agreement of mutual expectations.

CHANGING PAKISTANI BUSINESS ENVIRONMENT AND HRM Pakistani business environment is changing at a fast pace due to liberalization which started during 1990s. Liberalization means more freedom to conduct business operations. Liberalization has brought the following changes in Indian economy:' Industrial Policy Changes Very few industries requiring licenses,Replacement of FERA, 3) Almost no control under MRTP Act, 4) Role of public sector getting diluted, 5) Liberalization of foreign direct investment, and 6) More freedom in capital market. International Trade Policy Changes

1) Globalization of economy, 2) Continuous lowering down of import tariffs, 3) More items of import under general category, 4) Emphasis on export but not through financial incentives, and 5) Convertibility of rupee to a great extent. Structural Changes

1) Phasing out of subsidies, 2) Gradual dismantling of administered price mechanism, 3) Public sector disinvestment, 4) Exit policy for business, and 5) Smoother way for merger and acquisition. These changes have changed the nature of competition from a protected market to competitive market and most of the companies which were used of protected market felt real threats for their survival. These threats have been

Various threats generated by liberalization of economy can be met only through bringing corresponding changes in management practices including practices related to HRM. Such changes may be of the following nature The newer management practices, more emphasis has been given to HRM because of the following factors: 1. Emphasis on Core Competency. Post-liberalization, many organizations have started focusing on their Core competence and businesses are being organized around that. A core Competence is unique strength of an organization which may not be shared by others. This may be in the form of unique financial resources (finance available at a much lower cost), manpower resources, marketing capability, or technological capability. If the business is organized on the basis of core competency, it is likely to generate competitive advantages. . Competition for Human Resources. With the entry of foreign firms in the Pakistan industrial scene, nature of competition for human resources has changed. Foreign firms, particularly those operating in sector such as consultancy, merchant banking, investment banking, etc. and computer software companies of Pakistan s origin, have put lot of competition for acquiring managerial talents. With the result, most of the IIMs are able to place their PGP students with a very hefty financial compensation on the very first day of their recruitment programmers. This increased competition for human resources has forced the Pakistan s companies to have a relook about their human resources by adding more talents and developing existing talents. Besides the tenancy of employment, there are several conditions of employment the differences of which cause significant challenge to international HRM. The system of rewards, promotion, incentives and motivation, system of labor welfare and social security, etc., vary significantly between countries.

9. JOB REDUCTION:
Job reduction or layoff or downsizing is the term used for reductions that the companies make in the number of employees on the payroll, although the term "layoff" is used more often to refer to temporary displacement, while "downsizing" generally has more permanent connotations. Other terminology sometimes used in this regard include reductions in force (RIF), right-sizing, restructuring, and reorganization. Employee terminations in such cases are usually the result of surplus labor caused by economic factors, changing markets, poor management, or some other factor unrelated to worker behavior. Because work force reductions make a company vulnerable to many of the same legal risks inherent in behavior-related terminations, companies usually terminate workers by means of a carefully planned and documented process. The process is typically conducted in two stages: 1) Selecting the workers to be dismissed and then terminating them according to the above process; and 2) Providing benefits to ease the transition, including severance packages, unemployment compensation, and outplacement services.

Prior to the 1980s, layoff/downsizing initiatives were typically associated with business cycle downswings, with laid-off workers recalled as business conditions improved. Beginning in the 1980s, a greater proportion of layoffs resulted from plant and office closures and were, therefore, permanent. Many of these downsizing efforts were intended to make U.S. firms more profitable in the face of intensified global competition. As the U.S. economy improved in the 1990s, large-scale layoffs continued even at highly profitable firms, indicating a break with historical patterns. These layoffs, many of them resulting from re-engineering and restructuring efforts, impacted managerial positions to a greater degree than ever before. Conversely, displacement rates fell for blue-collar groups that have historically been most vulnerable to layoffs/downsizing. Today, primary causes of layoffs and downsizing initiatives include rapid technological change, increased international competition, changing customer demands, regulatory changes, regional economic downturns, and poor company leadership. Steps Involved in Job Reduction: Companies that engage in a study of their workforce prior to initiating layoffs or downsizing need to proceed carefully. After all, organizations must weigh the impact of such actions on company efficiency, morale, and public image. But care must also be taken to ensure that the reductions do not violate state and federal laws. As with behavior-related terminations, downsizing terminations cannot be based on bias against protected minorities, or even unintentionally result in an inequitable outcome for a protected group. In fact, extensive legislation exists to protect disabled workers, racial minorities, and workers over the age of forty, women, and other groups. In addition to bias-related laws, moreover, companies must comply with a battery of laws specifically directed at Cushing the blow for employees who are victims of corporate layoffs. The actual termination of employees as a result of downsizing, however, should follow the same general procedures used when employees are terminated for behavioral reasons. That is, 1. The situation should be reviewed carefully ahead of time and a plan established. 2. The criteria for dismissal should be well documented (options include eliminating positions by job title or classification, reducing each area or department by a certain percentage or number of employees, and determining which resources will be needed to handle future work) 3. The employees should be informed of their termination during a personal, face-to-face meeting that is not scheduled on a Friday afternoon or just before a holiday. 4. The employees should be presented with a letter outlining the assistance and benefits they will receive 5. And then other employees and customers should be notified. "The exiting process is contingent on a variety of factors," said Richard Bunning in Personnel Journal, "including whether employees have volunteered to exit, the potential danger of sabotage (such as in the computer area), the potential for vandalism and the importance of the employees' continued presence in the organization. With a partial downsizing, quicker usually is better . With a complete plant closure, a phased exit process may be necessary." Downsizing and Internal Communication: Downsizing, which may eliminate the jobs of many employees all at once, requires a more extensive communication effort on the part of management than does a single employee termination. As a result, it is essential that business owners and managers clearly explain the reasons for the action to their remaining employees. As Bunning remarked, "as the necessity to downsize becomes clear, management should openly

acknowledge the difficulty it had making this decision, which is required to restore (or maintain) the organization's health." The personal announcement should be followed with written communication, such as newsletters and bulletinboard postings, to help keep employees informed, eliminate rumors, and maintain morale and productivity. Dealing with the media is another consideration in downsizing, since the loss of jobs may be of interest to the community. Deems noted that companies might find it helpful to prepare press releases ahead of time and choose one person as a contact. The final stage of the downsizing process, outplacement, helps maintain the morale of remaining employees, enhance the public image of the company, and reduce the amount of unemployment compensation owed. Whenever possible, outplacement programs should be conducted by professional counselors in a neutral location, beginning as soon as possible after the downsizing occurs. Outplacement usually includes two activities: counseling and job search assistance. Both are necessary to help the displaced workers: 1) Develop a positive attitude; 2) Assess their career potential and direction, including background and skills, personality traits, financial requirements, geographic constraints, and aspirations; 3) Develop job search skills, such as resume writing, interviewing, networking, and negotiating; and 4) Adjust to life in transition or with a new employer. "The outplacement process often can be coordinated with local governmental and social service agencies," noted Bunning. "That way, employees may sign up for unemployment benefits, receive information about retraining programs, hear about other employment opportunities, receive financial planning tips and so on when they're told about benefits and receive severance pay." Job Reduction and Pakistan: Following are few facts about job reduction in Pakistan s organizations; KARACHI - The HSBC Pakistan has decided to cut down its number of employees either of the high or low ranks, sources told The Nation on Friday. According to reliable sources, 40 to 45 HSBC employees have been forced to resign, while letters were issued to them on Friday . (The Nation, Sunday, April 17, 2011) Pakistan, who was once market leader during 2003-05 in Pakistan is now planning for downsize by 30% of its overall headcount. In year 2003-2005 ZTE Pakistan s overall headcount was close to 1000 employees on their direct payroll. But after 2005, its market share gradually decreased and in 2009 it is now close to 400-500 employees out of which approx 300 employees are on their direct payroll and remaining are on third party contract through M/S HRS.

Due to recession, ZTE Pakistan is in tough period and payments to the subcontractors are being delayed extraordinarily due to financial crisis. In the past ZTE s main customer was PTCL but now its main customer is Zong (CMPak). KARACHI: The privatization ministry has barred Pakistan Telecommunication Company Limited (PTCL) from downsizing of around 18,000 employees through voluntary separation scheme (VSS) before privatization.

10. EMPLOYEE RELATION:


The Employee Relations Discipline concerns the relationship of employees with the organization and with each other. It includes the processes of developing, implementing, administering and analyzing the employeremployee relationship; performing ongoing evaluation of it; managing employee performance; ensuring that relations with employees comply with applicable federal, state and local laws and regulations; and resolving workplace disputes. It also includes matters that focus on HR careers, communications, legal and regulatory issues, technology, metrics and outsourcing in the employee relations field, as well as effective employee relations practices and global employee relations issues. It does not include matters involving union organizing, union elections, collective bargaining and ongoing union-management relations. For instance Advice is provided to supervisors on how to correct poor performance and employee misconduct. In such instances, progressive discipline and regulatory and other requirements must be considered in effecting disciplinary actions and in resolving employee grievances and appeals. Information is provided to employees to promote a better understanding of management's goals and policies. Information is also provided to employees to assist them in correcting poor performance, on or off duty misconduct, and/or to address personal issues that affect them in the workplace. Employees are advised about applicable regulations, legislation, and bargaining agreements. Employees are also advised about their grievance and appeal rights and discrimination and whistleblower protections. IMPORTANCE OF EMPLOYEE RELATION: The organization needs to maintain good employee relations in the organization because the success and failure of any organization is directly proportional to the labor put by each and every employee. The employees must share a good rapport with each other and strive hard to realize the goal of the organization. They should complement each other and work together as a single unit. For the employees, the organization must come first and all their personal interests should take a back seat. It is a pre-requisite for organizational success. Strong employee relations are also required for high productivity and human satisfaction. Healthy employee relations lead to more efficient, motivated and productive employees which further lead to increase in sales level. It signifies that employees should feel positive about their identity, their job as well as about being a part of such a great organization. There are circumstances in the life of every organization when employee and management relations are hampered. Instances of such circumstances are as follows:

1. When the employees do not behave as per accepted norms of behavior, it is known as employee indiscipline. Absenteeism, change in employee s behavior, slow performance and grievances are all forms of employee indiscipline. Thus, when the employees fail to meet management expectations in terms of standard performance and behavior, it is referred to as indiscipline. In such cases, it must be ensured by the management that steps should be taken so that employee s behavior is in conformity with the managerial expectations. 2. . Similarly, the employees also expect from the management to provide them a safe working environment, fair treatment, proper incentives, participation in decisions, and needs satisfaction. The failure on part of management to meet these expectations is termed as employee grievance. 3. When the employees fail to meet their own expectations whether in terms of personal goals, career goals, performance, self-respect, etc it is referred to as employee stress. Excessive workload, insufficient workload, peer pressure, excessive/unreasonable use of authority by the management, lack of promotional opportunities, nature of job, etc all again lead to employee stress.

All the above mentioned organizational factors influencing employee s relation must be carefully tackled. An optimistic approach to strengthen disciplinary culture rooted on shared norms of employees should be adopted. An effective grievance redressed system should be there. Stress management strategies should be followed in the organization. Improving Employee Relations: Employee relations must be strengthened in an organization. To do so, following points must be taken care of:-

1. Employee has expectation of fair and just treatment by the management. Thus, management must treat all employees as individuals and must treat them in a fair manner. Employee favoritism should be avoided. 2. Do not make the employees job monotonous. Keep it interesting. Make it more challenging. This can be done by assigning employees greater responsibilities or indulging them in training programs. 3. Maintain a continuous interaction with the employees. Keep them updated about company s policies, procedures and decisions. Keep the employees well-informed. Informed employees will make sound decisions and will remain motivated and productive. Also, they will feel as a member of organizational family in this manner. 4. Employees must be rewarded and appreciated for a well-done job or for achieving/over-meeting their targets. This will boost them and they will work together as a team. 5. Encourage employee feedback. This feedback will make the employers aware of the concerns of employees, and their views about you as an employer. 6. . Give the employees competitive salary. They should be fairly paid for their talents, skills and competencies.

7.

Be friendly but not over-friendly with the employees. Build a good rapport with the employee. The employee should feel comfortable with the manager/supervisor rather than feeling scared.

EMPLOYEE RELATION & PAKISTAN: The traditional relationship between the employee and the employer is that of Master and Servant , which is governed by terms of the contract between the two parties. Unfortunately, the terms of employment contract are usually not expressed explicitly in Pakistan. Lack of explicit terms of contract will likely lead to disputes and subsequent unrest. The government adopts measures to avoid exploitation of the weaker party the workers. The relationship between the employers and the employees are governed by two legislation acts: y
y

The Industrial & Commercial Employment (Standing Order) Ordinance (VI of 1968) for regulating the relationship at to Provincial level; The Industrial Relations Ordinance (XCI of 2002).

Labor Legislation: Pakistan s labor laws trace their origin to legislation inherited from India at the time of partition of the Indo-Pak subcontinent. The laws have evolved through a continuous process to meet the socio-economic conditions, state of industrial development, population and labor force growth, growth of trade unions, level of literacy, social welfare needy these objectives, the government shifts in labor policies have reflected the difference of political orientation of the different regimes. Under the Constitution labor is regarded as a concurrent subject , which means that it is the responsibility of both the Federal and Provincial governments. However, for the sake of uniformity, laws are enacted by the Federal government, stipulating that Provincial governments may make rules and regulations of their own according to the conditions prevailing in or for the specific requirements of the provinces in 200 ft. The total labor force of Pakistan is comprised of approximately 37.15 million people, with 47% within the agriculture sector, 10.50% in the manufacturing & mining sector and the remaining 42.50% in various other professions. Historically, in the subcontinent the ordinary law of master and servant regulated the relationship between employers and employees. The first piece of legislation affecting the employer-employee relationship was promulgated in the form of Industrial Disputes Act XIV of 1947. For the first time it seems to have been recognized that the workers had rights other than those conferred by mere contract. The act was adopted by Pakistan after independence. The Act remained valid till the promulgation of the Industrial Disputes Ordinance, LVI of 1959. The point to appreciate is that the concept of industrial dispute was not the dispute between any individual employee and his employer, but in essence it represented the differences between the employers and the employees as groups or even between different employee groups. The next legislation came in the form of the West Pakistan Industrial Disputes Ordinance of 1968, which repealed, in its application to West Pakistan, the Industrial Disputes Ordinance, of 1959. While the scheme of the Industrial Disputes Ordinance, 1968 was almost similar to that of the earlier ordinance, a significant change was introduced in the form of setting up of an appellate body. The Industrial Relations Ordinance, XXIII of 1969

was implemented at federal level. The ordinance was applied for over three decades; though it was amended significantly a number of times. The IRO XCI of 2002 has repealed the Industrial Relations Ordinance (IRO), XXIII of 1969. The successive governments of Pakistan have been quite sensitive to the issues related to labor. Government has also expressed the desire to improve the condition of workers by actively participating at international forums. As of July 2004, Pakistan has ratified 34 ILO Conventions. These include important conventions such as: Abolition of Forced Labor Minimum Age for workers Freedom of Association Weekly Rest for Workers Equality of treatment Abolition of Worst Form of Child Labor Keeping in view these commitments governments have promulgated various labor laws. While the legislation has gone through amendments at frequent time, the spirit of all acts of legislation was almost the same creating an environment that is conducive for promoting economic growth while safeguarding the interests of the workers. In broad terms, the provisions of the labor laws include: Contract of Employment provision of an explicit contract of employment Termination of the Contract specifying the notice period for termination. Working Time and Rest Time Provides a compulsory weekly rest time. Working hours provides the maximum number of hours an employee can work in day (including over time) Paid Leave includes various types of leave e.g. sick leave, maternity leave etc Minimum Age and Protection of Young Workers 18 years is the stipulated minimum wage workers. Equality employers to give fair and equal treatment of genders. Pay Issues (bonuses, minimum wages etc) Trade Union and Employers Association Regulation Right granted to employees as well as to employers for forming their associations and the rules to govern those associations. Workers Representation in the Enterprise participation in joint work councils. workers are given the right to participate in decision making by

Collective Bargaining and Agreements rules defining the formulation of Collective Bargaining Agents and the modes operandi for safe guarding the interests of the workers as groups. Collective Labor Disputes procedures for disputes resolution are laid down. Strikes and Lockouts explicitly defined. procedures for strike and lock out by employees and employers respectively are

Labor Courts various types of courts are established for adjudication.