Human Resource Management

Q.1 Nature, SIGNIFICANCE and scope of Human Resource Management

(HRM)

Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources
(HR)

Human resource management is the strategic approach to the effective and efficient
management of people in a company or organization such that they help their business gain a
competitive advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives.
Nature of HRM:

1. HRM involves management functions like planning, organizing, directing and

controlling.
2. It involves procurement, development, maintenance and management of human
resource.
3. It helps to achieve individual, organizational and social objectives.
4. HRM is a mighty disciplinary subject. It includes the study of management psychology
communication, economics and sociology.
5. It involves team spirit and team work.

Significance of HRM
Human Resource Management does all right from improving company morale and developing
methods to make sure high-performance standards and employee satisfaction, to resolving
conflicts among employees and ensuring a company stays within its budget.
Importance of Human Resource Management:
Human resources are the valuable assets of the corporate bodies. They are their strength. To
face the new challenges on the fronts of knowledge, technology and changing trends in global
economy needs effective human resource management. Significance of HRM can be seen in
three contexts: organisational, social and professional.
Organisation Significance:
HRM is of vital importance to the individual organisation as a means for achieving their
objectives.
It contributes to the achievement of organisational objectives in the following ways:
1. Good human resource practice can help in attracting and retaining the best people in the
organisation.
2. Developing the necessary skills and right attitudes among the employees through training,
development, performance appraisal, etc.
3. Securing willing cooperation of employees through motivation, participation, grievance
handling, etc.
4. Effective utilisation of available human resources.
5. Ensuring that enterprise will have in future a team of competent and dedicated employees.
Social Significance:
Social significance of HRM lies in the need satisfaction of personnel in the organisation. Since
these personnel are drawn from the society, their effectiveness contributes to the welfare of the
society. Society, as a whole, is the major beneficiary of good human resource practice.
i. Employment opportunities multiply.
ii. Eliminating waste of human resources through conservation of physical and mental health.
iii. Scare talents are put to best use. Companies that pay and treat people well always race ahead
of others and deliver excellent results.
Professional Significance:
Professional significance of HRM lies in developing people and providing healthy environment
for effective utilisation of their capabilities.
This can be done by:
1. Developing people on continuous basis to meet challenge of their job.
2. Promoting team-work and team-spirit among employees.
3. Offering excellent growth opportunities to people who have the potential to rise.
4. Providing environment and incentives for developing and utilising creativity.

The scope of HRM

Human resources planning: – Human resource planning is a process by which the company
to identify the number of jobs vacant, whether the company has excess staff or shortage of staff
and to deal with this excess or shortage.

1. Job analysis design: – Another important area of HRM is job analysis. Job analysis
gives a detailed explanation about each and every job in the company. Based on this
job analysis the company prepares advertisements.
2. Recruitment and selection: – Based on information collected from job analysis the
company prepares advertisements and publishes them in the news papers. A number of
applications are received after the advertisement is published, interviews are conducted
and the right employee is selected thus recruitment and selection are yet another
important areas of HRM.
3. Orientation and induction: – Once the employees have been selected an induction or
orientation program is conducted. The employees are informed about the background
of the company. They are told about the organizational culture and values and work
ethics and introduce to the other employees.
4. Training and development: – Every employee goes under training program which
helps him to put up a better performance on the job. Training program is also conducted
 for existing staff that have a lot of experience. This is called refresher training. Training
and development is one area were the company spends a huge amount.
5. Performance appraisal: – Once the employee has put in around 1 year of service,
performance appraisal is conducted i.e. the HR department checks the performance of
the employee. Based on these appraisal future promotions, incentives, increments in
salary are decided.
6. Compensation planning and remuneration: – There are various rules regarding
compensation and other benefits. It is the job of the HR department to look into
remuneration and compensation planning.
7. Motivation, welfare, health and safety: – Motivation becomes important to sustain
the number of employees in the company. It is the job of the HR department to look
into the different methods of motivation. Apart from this certain health and safety
regulations have to be followed for the benefits of the employees.
8. Industrial relations: – Another important area of HRM is maintaining co-ordinal
relations with the union members. This will help the organization to prevent strikes
lockouts and ensure smooth working in the company.

Q.2 Public Enterprises and their Structures

A commonly accepted definition of a public enterprise is “Any commercial or industrial
undertaking which the government owns and manages with a view to maximize social welfare
and uphold the public interest.”

Characteristics of Public Enterprises

The primary characteristics of public enterprises are:

• They function under the direct control of the government and some are even
established under statutes and Companies Act. Therefore, public enterprises are
autonomous or Semi-Autonomous in nature.

• Either the State or the Central government can control a public sector enterprise.

• Primarily, the objective of establishing a public enterprise is to serve the public.

They can supply essential goods/services at reasonable prices and also create
employment opportunities.

• A public enterprise endeavors to serve all section of people in the community.

• In some sectors, private organizations do not have permission to operate. Therefore,

the public sector enterprises enjoy a monopoly in operation. For example, the State
enterprises have a monopoly in Energy production, Railways, and Post and
Telegraph services.

• Sometimes, the country receives financial/technological assistance from the

international community for the development of industries. These grants are applied
through public enterprises.

• Public sector enterprises are liable to the general public for their actions.
 • These enterprises help in the implementation of the economic plans and policies of
the government.

• The government makes the primary investment in a public sector enterprise.

However, they arrange finance for the day-to-day operation making it financially
independent.
Organization of Public Enterprises

In India, public sector enterprises have three different forms of organization:

1. Departmental Undertaking – which is primarily used for providing essential

services like railways, postal services, etc. to the general public. A Ministry of the
Government controls such organizations in the same way as any other department
in the government. This form of a public enterprise is apt for activities which require
governmental control for the public interest.

2. Statutory or Public Corporation – The Parliament or State Legislature can create

a corporate body through a Special Act which defines its functions, powers, and
pattern of management. This is a Statutory or Public Corporation. In this form, the
government provides the entire capital. Some examples, Life Insurance Corporation
of India (LIC), State Trading Corporation, etc.

3. Government Company – is a company in which the government holds at least 51

percent of the paid-up capital. A Government Company is registered under the
Companies Act. Further, all the provisions of the Act are applicable to such a
company. Some examples, Bharat Heavy Electricals Limited, Bharat Electronics
Limited, etc.

Q.3 Approaches to HRM: & Different Kinds Of Approaches

We strongly recommend everyone to follow these approaches for getting the best of their
businesses. Let’s go through all of them and get the required answers!

1. Strategic HRM

Strategic HRM can be defined as the strategy to develop proper planning to hire & manage
employees for fulfilling the long-term goals of the company. It includes the road map for
developing employees to make sure their various prospects get combined for required results.

The main motive of this strategy is targeting the long-term people issues and creating resources
for the tackling needs of the future. This approach becomes popular in the 1990s and has
worked superbly for most organizations until now. The reason behind its popularity is the great
results that most companies got from this approach.
2. Management Approach

Management approach can be called techniques using which company is controlled. The
human resource department usually adopts them as a part of their working style. All the
managers of the company have to follow this approach for managing their staff appropriately.

Its main motive is having effective management to attain a competitive advantage and
maximize the performance of employees. It is one of the most important approaches to HRM
for the success of a company. Management is the backbone of a company that needs to perform
as per expectation.

3. Commodity Approach

Another major technique that the HR department uses is the commodity approach, where
employees’ efforts are maintained. It needs to be understood that workers are the real
commodity of an organization. There is a need to ensure that they work as per the required
parameters without creating any issues.

The HR department must hire the right commodities for fulfilling the needs of all jobs. Due to
this approach, employees are used as the economic men to complete the company’s goals.

4. Human Resource Approach

There are all the main areas of HR touched down using this approach. It consists of everything
ranging from compensation, recruitment, learning & development, and succession planning
among others. However, the HR department should perform all these activities with dignity
and respect for all employees.

There are many companies where the staff doesn’t get the respect they deserve. In that case,
the environment can’t be positive enough for fulfilling all the goals. So, the HR department
should create an environment where integrity and respect should be very important parts.

5. Proactive Approach

The HR managers should identify the challenges and problems before they start. As per this
approach, it is better to perform prevention than cure the issue. It helped companies to save
tons of valuable time and money without too much effort.

We suggest HR managers read the PF Drucker theory, where the importance of a proactive
approach is clearly mentioned. If you talk with experts, they ask to use the proactive approach
and create a company with a determined approach. It has helped tons of startups in completing
their long-term goals.

6. Reactive Approach
This one is opposite to the proactive approach where the high authorities have to perform
according to the problems. There is a huge chance of missing opportunities and compounded
problems when all the efforts will be made under the reactive approach.

Companies often lose a great sort of time and money by following this approach. Experts
strongly recommend to avoid a reactive approach in their HR practice.

7. System Approach

In the system approach, the authorities combine the cluster of interrelated elements for
achieving a common goal. There are tons of things or components in a company having strong
relationships with each other but never used together. However, the presence of this approach
will allow these separate parts to work together to fulfill the company’s requirements.

It is the duty of human resource specialists to implement these approaches to HRM adequately
and achieve the company’s goal. There are tons of things that they can be combined for
fulfilling what company wants from them. Any company can use these approaches to HRM for
achieving success, irrespective of their size.

Q.4 Personnel Management

Personnel management can be defined as obtaining, using and maintaining a satisfied

workforce. It is a significant part of management concerned with employees at work and with
their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation,

integration and maintainance of people for the purpose of contributing to organizational,
individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with
human resource of organization.”

Nature of Personnel Management

1. Personnel management includes the function of employment, development and

compensation- These functions are performed primarily by the personnel management
in consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their fullest contribution to
the concern.
3. Personnel management exist to advice and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an organization.
4. Personnel management lays emphasize on action rather than making lengthy schedules,
plans, work methods. The problems and grievances of people at work can be solved
more effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential
fully to the concern.
6. It also motivates the employees through it’s effective incentive plans so that the
employees provide fullest co-operation
 1. Personnel management deals with human resources of a concern. In context to human
resources, it manages both individual as well as blue- collar workers.

Role of Personnel Manager

Personnel manager is the head of personnel department. He/She performs both managerial and
operative functions of management. His role can be summarized as :

1. Personnel manager provides assistance to top management- The top management are
the people who decide and frame the primary policies of the concern. All kinds of
policies related to personnel or workforce can be framed out effectively by the
personnel manager.
2. He/She advices the line manager as a staff specialist- Personnel manager acts like a
staff advisor and assists the line managers in dealing with various personnel matters.
3. As a counsellor,- As a counsellor, personnel manager attends problems and grievances
of employees and guides them. He/She tries to solve them in best of his capacity.
4. Personnel manager acts as a mediator- He is a linking pin between management and
workers.
5. He/She acts as a spokesman- Since he is in direct contact with the employees, he is
required to act as representative of organization in committees appointed by
government. He represents company in training programmes.

Functions of Personnel Management

Follwoing are the four functions of Personnel Management:

1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development

Q5 Personnel Administration

French:
“Personnel Management is the recruitment, selection, development, utilization of an
accommodation to human resources by organization.”
In the views of French, personnel management is concerned with the proper utilization of
human resources in the organization.
• Personnel administration is concerned with people at work and their relationships
within an organization.
• It refers to the entire spectrum of an organization's interaction with its human resources
from recruitment activity to retirement process.
Nature of Personnel Management:
The following points will bring out the nature of personnel management:

1. Managing People:
Personnel management is concerned with managing people at work. It does not manage only
organized or unorganized workers in the organization, but everyone working in the enterprise.
It covers all persons including clerical staff, executives, managers.

2. Concerned with Employees:

Personnel management deals with employees both as individuals as well as in groups. The aim
is to motivate people for getting best results from them.

3. Helping Employees:
The employees are helped to develop their talent fully by providing them appropriate
opportunities. This will give them job satisfaction and may improve their performance at work.

4. Universal Application:
Personnel management may be used everywhere and in every type of organization. It is equally
useful in a government, semi-government, non-profit organizations as is beneficial to industrial
and commercial houses. It is a part of general management and has roots extending throughout
and beyond each organization.

5. Continuous Application:
Personnel management is continuously used in every type of situation. It is not something
which may be used here and there or now and then. In the words of George Terry, “It cannot
be turned on and off like water from a faucet; it cannot be practiced only one hour each day or
one day a week. Personnel management requires a constant alertness and awareness of human
relations and their importance in everyday operations.”

Objectives of Personnel Management:

1. Enterprise Objectives:
The primary objective of personnel management is to help in achieving organizational goals.
There will be a need for co-operation from everyone in the organization for achieving business
goals. This requires that such persons should be employed who are capable of taking up the
jobs assigned to them.

They should also be given proper training for undertaking the work effectively. This will be
ensured by a suitable policy of recruitment, training and placement. The satisfaction of
employees should be ensured to get their wholehearted co-operation. This may be done by
looking after their convenience at work and offering them financial and other incentives. The
enterprise objectives will only be achieved if everybody works for their attainment. Employees
should be motivated to contribute their maximum to the organizational goals.

2. Personnel Objectives:
Personnel management aims at the material and mental satisfaction to each employees in the
organization. This will be possible when employees are provided with proper work
environment and job satisfaction. The work place should be neat and clean and properly
ventilated. Job satisfaction will include good remuneration, job security, avenues for
promotion, financial and other incentives for improving performance.

3. Social Objectives:
Personnel management also aims at preserving and advancing general welfare of the
community. An enterprise owes a responsibility to the society at large. It can serve the society
by creating more employment opportunities, producing quality goods at cheap rates. It can also
help society by using productive resources in a best possible way and minimizing their waste.

Q.6 Governmental Structure of Pakistan

The government in Pakistan is composed of the executive, legislative & judicature branches

1. The Executive Government

Prime Minister of Pakistan
The Prime Minister of Pakistan is the Head of Government of Pakistan and designated as the
Chief Executive of the Republic, who leads the executive branch of the government, oversees
the economical growth, heads the Council of Common Interests as well as the Cabinet, and is
vested with the command authority over the nuclear arsenals. He is also a leader of the nation
who has control over all matters of internal and foreign policy.

The Prime Minister is appointed by the members of the National Assembly through a vote. The
Prime Minister is assisted by the Federal Cabinet, a Council of Ministers whose members are
appointed by the President on the advice of the Prime Minister. The Federal Cabinet comprises
of the ministers, ministers of state, and advisers.

2. The Parliament
The bicameral federal legislature consists of the Senate (upper house) and National Assembly
(lower house). According to Article 50 of the Constitution, the National Assembly, the Senate
and the President together make up a body known as the Majlis-i-Shoora (Council of Advisers).

a. The President of Pakistan

The President of Pakistan is the ceremonial Head of the State and a figurehead who is a civilian
Commander-in-Chief of the Pakistan Armed Forces as per the Constitution of Pakistan and a
leader of the nation.

The President is kept informed by the Prime Minister on all the matters of internal and foreign
policy as well as on all legislative proposals. Constitution of Pakistan vest the President the
powers of granting the pardons, reprieves, and the control of the military; however, all
appointments at higher commands of the military must be made by President on a "required
and necessary" on consultation and approval from the Prime Minister. In addition, the
constitution prohibits the President from exercising the authority of running the government.

b. The Senate
The Senate is a permanent legislative body with equal representation from each of the four
provinces, elected by the members of their respective provincial assemblies. There are
representatives from the Federally Administered Tribal Areas (FATA) and from Islamabad
Capital Territory. The Chairman of the Senate, under the constitution, is next in line to act as
President should the office become vacant and until such time as a new president can be
formally elected.

Both the Senate and the National Assembly can initiate and pass legislation except for finance
bills. Only the National Assembly can approve the federal budget and all finance bills. In the
case of other bills, the President may prevent passage unless the legislature in joint sitting
overrules the President by a majority of members of both houses present and voting. Unlike
the National Assembly, the Senate cannot be dissolved by the President.

c. National Assembly of Pakistan

Members of the National Assembly are elected by universal adult suffrage (eighteen years of
age). Seats are allocated to each of the four provinces, the Federally Administered Tribal Areas,
and Islamabad Capital Territory on the basis of population. National Assembly members serve
for the parliamentary term, which is five years, unless they die or resign sooner, or unless the
National Assembly is dissolved.

Although the vast majority of the members are Muslim, about 5% of the seats are reserved for
minorities, including Christians, Hindus, and Sikhs. There are also 50+ special seats for women
now, and women are selected by their respective party heads.
 3. The Jurisdiction
The Judiciary includes the Supreme Court, Provincial High Courts, District & Sessions Courts,
Civil and Magistrate Courts exercising civil and criminal jurisdiction. Some Federal and
Provincial Courts and tribunals such as Services Court, Income Tax & Excise Court, Banking
Court and Boards of Revenue's Tribunals are established in all provinces as well.

a. Supreme Court
The Supreme Court has original, appellate, and advisory jurisdiction. The Chief Justice of the
Supreme Court is appointed by the President; the other Supreme Court judges are appointed
by the President after consultation with the Chief Justice. The Chief Justice and other Judges
of the Supreme Court may remain in office until age of sixty-eight years.

b. Federal Shariat Court of Pakistan

The Federal Shariat Court (FSC) of Pakistan is a court which has the power to examine and
determine whether the laws of the country comply with Shari'a law. It consists of 8 Muslim
judges appointed by the President of Pakistan after consulting the Chief Justice of this Court.
Of the 8 judges, 3 are required to be Ulema who are well versed in Islamic law. The judges
hold office for a period of 3 years, which may eventually be extended by the President.

If any part of the law is declared to be against Islamic law, the government is required to take
necessary steps to amend such law appropriately. The court also exercises revisional
jurisdiction over the criminal courts, deciding Hudood cases. The decisions of the court are
binding on the High Courts as well as subordinate judiciary. The court appoints its own staff
and frames its own rules of procedure.

c. Provincial and High Courts

Currently all four provinces; Punjab, Sindh, Khyber Pakhtun Khwah and Baluchistan have
High Courts. After the approval of 18th Constitutional Amendment in April 2010, a new High
Court is established at Federal Capital Islamabad with the name of Islamabad High Court.
Judges appointments are proposed by a Parliamentary Commission.

In addition, there are special courts and tribunals to deal with specific kinds of cases, such as
drug courts, commercial courts, labor courts, traffic courts, an insurance appellate tribunal, an
income tax appellate tribunal, and special courts for bank offences. There are also special courts
to try terrorists. Appeals from special courts go to high courts except for labor and traffic courts,
which have their own forums for appeal. Appeals from the tribunals go to the Supreme Court.
 d. Ombudsman / Mohtasib
A further feature of the judicial system is the office of Mohtasib (Ombudsman), which is
provided for in the constitution. The office of Mohtasib was established in many early Muslim
states to ensure that no wrongs were done to citizens. Appointed by the president, the Mohtasib
holds office for four years; the term cannot be extended or renewed.

The Mohtasib's purpose is to institutionalize a system for enforcing administrative

accountability, through investigating and rectifying any injustice done to a person through
maladministration by a federal agency or a federal government official. The Mohtasib is
empowered to award compensation to those who have suffered loss or damage as a result of
maladministration. This institution is designed to bridge the gap between administrator and
citizen, to improve administrative processes and procedures, and to help curb misuse of
discretionary powers.

Q.7
There are a total of 12 important functions or powers of Federal Board of Revenue (FBR), an
apex agency dealing with the tax collection.
Following is the inclusive list of FBR Functions:
1- To implement the tax administration reforms;
2- To promote voluntary tax compliance
3- To make the Board a service oriented organization
4- To implement comprehensive policies and programs for the education and
facilitation of taxpayers, stakeholders and employees
5- To adopt modern effective tax administration methods, information technology
systems and policies in order to consolidate assessments; improve processes,
organize registration of tax payers, widen the tax base, and make departmental
remedies more efficient including enforcement of, or reduction or remission in,
duty, penalty or tax, in accordance with the relevant law for the time being in
force
6- To improve the productivity through a comprehensive and effective human
resource strategy;
7- To identify and select through Internal Job Posting process the employees for
designated jobs;
8- To grant additional allowances or any other incentives and rewards to the
employees and members of the Board;
9- to take appropriate measures including internal controls to combat corruption
within the organization
10- To re-designate posts, prepare jobs description and design KPIs
11- To investigate financial crimes, money laundering, tax evasion, tax avoidance.
12- To honor Pakistan international tax obligations.
FUNCTIONS
i. Grant of approval for filing of appeals/references before
High Courts and CPLAs before the Supreme Court
ii. Coordinate with field offices to ensure representation, filing
of para-wise comments, and pursuing litigation in various
courts.
iii. Coordinate with field offices and FTO office to ensure
submission of reports to FTO. implementation of FTO
recommendations, filing of representation before the
President and review before the FTO.
iv. Coordinate with Law Division and Attorney General of
Pakistan.
v. Matters relating to placement of advocates on panel of FBR,
appointment of advocates/ASCs and AORs, monitoring of
performance of panel advocates/legal advisors and their
professional fee and special fee.
vi. Maintain and update list of pending cases before the
Supreme Court and High Courts through Appeal
Management Processing System and Litigation Management
System.
vii. Monitor performance of Task Forces constituted for the
purpose of liquidation of sub-judice cases before the
Supreme Court and High Courts.
viii. Monitor performance of CsIR (A) and Collectors (A) and
rationalize their work load.
ix. Circulate important judgments of courts to the field offices
and place the same on web.
x. Exercise powers and perform functions of the Board under
the provisions of Sales Tax Act 1990, Income Tax Ord inance
2001 and Federal Excise Act 2005. as delegated by the
Board.
xi. Perform any other duty or task assigned by the Chairman,
FBR.