Professional Documents
Culture Documents
human resource management for national and international organisations. In recent years, there has
been a remarkable development in HRM throughout the world, however, the majority of research has
focused on HRM in advanced industrial societies. The challenges of management of HRs in
developing countries are complex and demanding.
As the world develops into a ‘global business village’, there is a greater need to
know how managers in various parts of the world cope with issues and problems
related to management of human resources. Thus, we must highlight the major
factors that impact on HRM policies and practices in different contexts. Pakistan
is the seventh most populous country of the world. At 2.18 percent, it has one of
the world’s highest population growth rates, such that in the next decade its
population is expected to surpass 260 million. The total employed labor force is
estimated at 38.18 million, which is only 27.66 percent of the total population. In
effect, 41 percent of the total population is under the age of 14. Also, due to
slow economic growth for the past two years, well over 2.36 million people are
unemployed.
The economy is agrarian in nature as 46 percent of the labor force is employed
in the agricultural sector. Since the early 1990s, Pakistan has been
implementing a comprehensive program of deregulation and fostering a climate
for private investment by opening up activities previously monopolized by the
public sector. Bold steps have been taken to privatize the entire public sector,
including financial institutions and industrial units and lucrative incentives have
been offered for private investment. These efforts, aimed at reversing the trend
of nationalization and improving economic growth, have created a suitable
business environment in the country. Public sector organizations have been
marked by a passive management culture. Political patronage rather than sound
business decisions have often determined their operations. Therefore, from the
onset, the private sector was encouraged to develop forward-looking
management systems. However, it was not until 1997 that the government
undertook the task of changing the prevailing corporate culture of public sector
enterprises by appointing professional teams of managers at the top-most
hierarchical levels whose task was to change the HRM culture by making it
meritocratic, decentralized and responsive to employees’ needs , and outlining a
unique program that distinctly outlined the need to refashion a new work culture
whose building blocks are characterized by innovation, quality and discipline.
The initial success of invigorating the economy was dampened by nuclear tests,
subsequent imposition of sanctions by the G-7 countries and frequent changes
of governments, with the result that the economy started to stagnate and the
public began to grow disillusioned with the state of affairs.