Need and Importance of Human Resource
Human Resource Management (HRM) pertains to the decisions, processes and activities that must
meet the organizational requirements for stafng including determining, hiring, training and
retaining while supporting the work performance of employees, towards achieving its goals and
targets.
Stafng:
Strategically determining, recruiting and hiring the human resource needed for the business.
Compensation and benets: Establishing effective and attractive wages and benets.
Training and developing employees: Ensuring that employees and staff grows in knowledge and
experience to help expand the business and continue to meet the changing needs of customers.
policies:
Orienting staff on policies and procedures such as schedules, safety, security, etc.
Continually assessing the quality of the workplace and HR policies to ensure employees want to stay
with the business.
issues:
Complying with the ever- increasing number of federal, state and local regulations.
Basic workplace
Retention:
Regulatory
Importance of Human Resource Management
Full the Human Resource Requirement:
Human resource management lls in the gap between the vacancies and the suitable candidates for
such positions.
Employee Retention:
HRM not only functions to acquire the manpower but also concentrates on the maintenance and
retention of human capital.
Enhance the Quality of Work-Life Balance:
It focuses on the continuous enhancement of job facilities, hence improving the quality of
employee’s work-life balance.
Redressing Grievance and Conict:
HRM addresses the problems between employees or with the management as it is essential for any
business to resolve internal conicts and grievances to ensure a sound and co-operative work
environment.
Achieving Organizational Goals:
To reach set objectives and targets on time it is necessary to direct the employee’s efforts towards
business goals which can only be ensured through effective human resource management.
Long-term Existence in the Market:
Effective HRM ensures market competitiveness by enhancing employees performance and
developing their competencies.
Developing Team Spirit:
It brings together different employees as a team to accomplish set goals. HRM also makes the
employees feel valuable to the business.
Employee Satisfaction and Welfare:
HRM works for the welfare, safety and security of the business while it is also concerned about the
level of satisfaction derived by an employee from his/her job.
Recruitment, Selection and Legal Obligations
b
Recruitment
§ Recruitment refers to the process of starting with identication of a vacancy to its job
analysis and to attracting, nding and hiring suitable candidates for the job.
§ The basic purpose of recruitment is to create a pool of eligible candidates for the purpose
of selection.
§ It starts before and ends beyond the selection process.
Selection
§ Selection involves a series of steps by which candidates are screened for selecting the most
suitable individuals for vacant positions.
§ The basic purpose of the selection process is to choose the right candidate to ll a particular
position(s).
§ Thisisapartoftherecruitmentprocess.
Types of Recruitment Needs
Planned Need: When a new employee needs to be hired due to a known reason and the business is
prepared for the same in advance, it is a planned need. e.g. retirement of an employee.
Anticipated Need: Anticipated needs are majorly controlled by internal and external environmental
factors. Such requirements can be predicted by the business owners with the help of past
experiences and news updates etc. e.g. technological advancement, expansion, merger, acquisition
etc.
Sudden Need: Sometimes, the need for recruiting personnel arises due to an unexpected reason.
e.g. employee walkouts, demise and terminal sickness.
Recruitment Process
Identifying Job Requirement
Preparing Job Description and Job Specication
Advertising the Vacant Position
4 5 6 7
Attracting Candidates to Apply Managing Scrutinizing Shortlisting
for Job Applications Applications Candidates
Selection of the Candidate
Issuance of Appointment Letter with Terms and Conditions of Appointment
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Induction and Orientation Program
The Selection Process
The selection process as a part of the recruitment process involves a series of steps before the nal
selection is made. The procedure of selection may vary from business to business and each business
may design its own selection process keeping in view the urgency of hiring and the prerequisites for
the vacancy. Broadly, the process can be summarized as follows:
The selection process typically consists
of eight steps.
Passed
Initial Screening
Passed
Completed Application
Passed
Employment Test
Passed
Passed
Failed to meet minimum qualifications
Failed to complete application or failed job specifications
Failed test
Failed to impress interviewer and/or meet job expectations
The Selection Process
Conditional Job Offer
Comprehensive Interview
Background Examination if Required
Problems encountered
Unfit to perform essential elements of job
Reject Applicant
Permanent Job Offer
Medical/Physical Examination (Conditional Job Offer Made)
Able to perform essential elements of the job
Legal Obligations
HR policies are a written description of guidelines, rules and regulations for the prescribed
procedures, processes and activities to be carried out by the HR department. Due to their
signicance in the management, these can be termed as rights and responsibilities of employers and
employees. There are certain HR policies that are required by law and it should be maintained in
written form. If a policy is well developed and clearly written, it helps communication with
employees, claries expectations and makes sure that everyone is treated in an equally and fairly
way.
If an employer has ve or more employees, a written health and safety policy is mandatory. This
policy deals with a number of health and safety workplace issues, including accident reporting and
what to do in case of a re. The policy must set out the employer’s commitment to reduce risks and
observe legal duties relevant to the workplace and its business. It will also set out what employees’
duties are in relation to health and safety and how they can meet these obligations. Similarly, a data
protection and security policy needs to be developed as well.
Employment Laws in Pakistan
Equal Employment
Opportunity
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§ Disabled
§ Minorities
§ Without Gender
Discrimination
*
Minimum Wages
Employment
Information
2 3
and Health Security
Working Hours and Holidays
Maternity Leave Policy
Employees Reference Check
§4§
PKR 990/day (Skilled Worker) PKR 770/day (Semi Skilled Worker)
PKR 665/day (Unskilled Worker)
5§§
Minimum Age
14 Years 6 (Federal, KPK
and Sindh)
15 Years
(Punjab)
Previous Employment
§
§ Education
Staff Training and Development
Employee training and development refers to the continued efforts of a business to boost the
performance of its employees. Businesses aim to train and develop employees by using different
educational methods and programs.
Training presents a prime opportunity to expand the knowledge base of all employees. Training and
development provides both the individual and business as a whole with benets that make the cost
and time of training a worthwhile investment.
*Chief Commissioner Directorate of Industries & Labor ITC, Islamabad.
Teaches
Retains
Supports Succession Planning
Coaches
Training & Development
Improves Performance
Addresses Weaknesses
Supplies Knowledge
Increases Satisfaction
Training and development can be initiated for a variety of reasons for an employee or group of
employees, such as follows:
When a performance appraisal indicates performance improvement is needed.
To "benchmark" the status of improvement so far in a performance improvement effort.
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As part of an overall professional development program.
As part of succession planning to help an employee be eligible for a planned change in his/her role in
the business.
To "pilot" or test the operation of a new performance management system.
To train employees about a certain topic such as communications, computer skills, customer service,
diversity, ethics, human relations, quality control initiatives, safety and sexual harassment.
Performance Appraisals
Define Expectations
Record Performance
Measure and Evaluate Performance
Provide Feedback
Performance appraisal/performance review is a method by which the job performance of an
employee is documented and evaluated. Performance appraisals are an integral part of career
development and consist of regular reviews of employee performance within the business. It
enables employees to form an outline of their anticipated goals in much clearer terms thereby
helping them execute their goals with best possible efforts.
A small business with a few employees or one that is just starting to appraise its staff may choose to
use a prepackaged appraisal system consisting of either printed forms or software. Many businesses
choose to develop their own appraisal form and system in order to accurately assess and document
an employee's performance in light of the business's own unique goals and culture.
Components of Performance Appraisal
Types of Performance Appraisals
1. 1 The 360-Degree Appraisal
2. 2 General Performance Appraisal
3. 3 Manager Performance Appraisal
4. 4 Technological Performance Appraisal
5. 5 Employee Self-Assessment
6. 6 Project Evaluation Review
7. 7 Sales Performance Appraisal
Employee Protection Policies
Types of Appraisals & Assessment Terms:
1. The 360-Degree Appraisal
I t allows other employees to provide feedback about their experience with a specic employee. This
feedback of peers can be reviewed by manager and considered for the appraisal process.
2. General Performance Appraisal
It is an ongoing communication between the manager and the employee throughout the year. At the
end of the year, it is determined if the pre-set goals and objectives were met, provide feedback and
set new goals.
3.Technological/Administrative Performance Appraisal
It assesses technical expertise/capabilities of an employee.
4. Employee Self-Assessment
The employee assesses himself/herself and it is nally compared with the manager’s completed
assessment results. It is followed by discussions and if there are differences, manager speaks to the
employee about it.
5. Manager Performance Appraisal
Managers go through the appraisal process. It is the role of the manager that is very crucial handling
both the team and the customer. Manager has to satisfy the clientele without disrupting the
(team’s) employee morale. Most often manager appraisal process involves feedback from the
respective team members and sometimes from the customer as well.
6. Project Evaluation Review
This is one of the best ways to identify how good an employee is at work. Rather than to wait to
review an employee at the end of the year, it helps evaluating employees at the end of each project.
7. Sales Performance Appraisal
A salesperson is judged by the goals he/she has set versus his/her results. Salesmen are closely held
to the nancial goals of any organization. The manager and salesperson must nd out ways to
achieve goals prior to which they must set realistic goals.
Labour Rights in the Constitution
The Constitution of Pakistan contains a range of provisions with regards to labour rights found in
Part II: Fundamental Rights and Principles of Policy.
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Article 11 of the Constitution prohibits all forms of slavery, forced labour and child labour;
2
Article 17 provides for a fundamental right to exercise the freedom of association and the right to
form unions;
3
Article 18 provides the right of its citizens to enter upon any lawful profession or occupation and to
conduct any lawful trade or business;
4
Article 25 lays down the right to equality before the law and prohibition of discrimination on the
grounds of sex alone;
5
Article 37(e) makes provision for securing just and humane conditions of work, ensuring that
children and women are not employed in vocations unsuited to their age or sex and for maternity
benets for women in employment.
1Article: 11 Slavery, forced labour, etc., prohibited. (2011, February 19). Retrieved from
https://pakistanconstitutionlaw.com/article-11-slavery-forced-labour-etc- prohibited/.
2Article: 17 Freedom of association. (2015, July 22). Retrieved from
https://pakistanconstitutionlaw.com/article-17-freedom-of-association/.
3Article: 18 Freedom of trade, business or profession. (2013, April 10). Retrieved from
https://pakistanconstitutionlaw.com/article-18-freedom-of-trade-business-or- profession/.
4Article: 25 Equality of citizens. (2014, May 12). Retrieved from
https://pakistanconstitutionlaw.com/article-25-equality-of-citizens/.
5Article: 37 Promotion of social justice and eradication of social evils. (2013, March 29). Retrieved
from https://pakistanconstitutionlaw.com/article-37-promotion-of- social-justice-and-eradication-of-
social-evils/.
Some employee protection policies as per the law of Pakistan are as follows:
Every employer in an industrial or commercial establishment is required to issue a formal
appointment letter at the time of employment to each worker. The obligatory contents of each
labour contract, if written, are conned to the main terms and conditions of employment, namely
nature and tenure of appointment, pay allowances and other fringe benets admissible, terms and
conditions of appointment.
The services of a permanent worker cannot be terminated for any reason other than misconduct
unless one month’s notice or wages in lieu thereof has been furnished by the employer or by the 1
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worker if he/she so chooses to leave his or her service. One month’s wages are calculated on the
basis of the average wage earned during the last three months of service. Other categories of
workers are not entitled to notice or pay in lieu of notice. All terminations of service in any form
must be documented in writing stating the reasons for such an act.
Pakistan Factories Act, 1934 and Section 8 of the West Pakistan Shops and Establishments
Ordinance, 1969 restricts weekly work hours at 48 hours.
As provided in the Factories Act, 1934, every worker who has completed a period of twelve months
continuous service in a factory shall be allowed, during the subsequent period of twelve months,
holidays for a period of fourteen consecutive days.
The Maternity Benet Ordinance, 1958 stipulates that upon the completion of four months
employment or qualifying period, a worker may have up to six weeks prenatal and postnatal leave
during which she is paid a salary drawn on the basis of her last pay. The Ordinance is applicable to all
industrial and commercial establishments employing women excluding the tribal areas. It also places
restrictions on the dismissal of the woman during her maternity leave.
Article 11(3) of Pakistan’s Constitution expressly prohibits the employment of children below the age
of fourteen years in any factory, mine or other hazardous employment.
As per the Protection Against Harassment of Women at the Workplace Act of 2010, sexual
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harassment of women at workplace is a criminal offence with a maximum punishment for
perpetrator from one to three years.
1National Labour Law Prole: Islamic Republic of Pakistan. (2011, June 17).
Retrieved from https://www.ilo.org/ifpdial/information-resources/national-labour-law-proles/
WCMS_158916/lang--en/index.htm.
2Sexual harassment includes but is not limited to:
i. Making unwelcome sexual advances
ii. Verbal harassment or abuse, verbal or written communication (it includes narration of
sexual incidents, emailing or messaging or showing explicit sexual content in print or
electronic form (SMS, Email, Screensavers, Posters, CDs etc.)
iii. Request for sexual favors (invitations for sex, requests for going out on dates)
iv. Physical conduct (like touching, kissing, patting, pinching, physical assault like rape etc.)
v. Sexually demeaning attitude (leering or staring at a person’s body
Planning for Human Resource Management
A human resource management plan can be developed following these six steps:
Determine Human Resource Needs: Anticipate the growth or decline expected in the business by
factoring in some changes in the economic situation and forecast operations and sales for next year.
Then create an anticipated or tentative work plan and determine how will this impact the workforce.
This is as good a start as looking at the crystal ball for assessing your human resource need.
Determine the Recruiting Strategy: Once the goal is in sight, it is necessary to write down a strategy,
a way forward approach, stating how the right people will be recruited at the right time. Provide a
timeline. Follow through with detailed selection process complete with induction and orientation
program.
Develop Training and Development Plans: Based on the strategic plan, assess the general training
needs and nalize the TNA through the employee discussions. Ask questions such as, is there new
software that everyone must learn? Are there problems in handling work issues and so on?
Whatever the training topics are, the HR manager should provide plans for training and
development of employees in the HRM plan, including the On the Job, Online, internal and external
trainings.
Determine Compensation: The HR manager must provide industry benchmark for compensation
practices and apprise the appropriate authority within the organization to determine pay scales and
other compensation such as health care, bonuses and other perks.
Appraise Performance: The HR needs to establish standards for appraisal. The standards are to be
communicated to the employees and appraisal process clearly spelt out. The process of appraisal
needs to be as rigorous and as fair and equitable as possible with opportunities for review in case of
grievance.
HR Policy Review: The organization and its HR department are equally responsible for regular
periodic review of the HRM policy towards making it current with market trends and fair and
equitable between the organization and the employee. The fairness and equity in the HRM policy
and process creates a solid foundation for employees’ loyalty to the organization. Each review of the
policy documents need to be numbered and signed.
Human Resource Management Plan
Monitor, Control and Feedback
Implement Plan
Analyze Objectives
7 Steps Elements of Human Resource Management
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Current Manpower Inventory
Forecast Demand
Formulate Plan
Estimate Gaps
