WHAT is in vogue in the Pakistani industry these days? Setting up a Human Resource Department! If you have even a slightest doubt over the validity of the statement than you must start looking at the classified pages in any news paper on Sunday.

Surely, you will come across the avalanche of advertisements seeking an expert, either on Human Resource Management (HRM) or otherwise on Training and Development (T &D). While looking at such advertisements, implying the hidden desire of the management to have a full fledged HR department in the organization, you may think that Human Resource Management is some sort of a magic stick with a capability to revolutionize the industrial scene, and is therefore being adopted by the Pakistani organizations vigorously.

But when one steps out of these classified pages in to an organization with a so-called functional human resource department then the fantasy of the vigour vanishes in a second, making him realize that the practice of setting up an HR department is not the culmination of some desire driven by management’s motivation, but is a manifestation of our psychological submission to the Western culture.

HRM is the phenomenon of late 19th century, when, with the growth of industrialization in the West, the role of HR manager started to emerge. However, it gained importance in 1950’s, when Japanese used it as a strategic resource. That led to the coining of the term HRM and the realization among the managements that an organized and militant labour force was an essential requirement for efficiency and that a “Human approach” towards employees paid greater dividends both at the organizational and national level.

Afterwards, HRM progressed to the centre stage of the organization. Today, therefore in truly world class corporations the HRM function has assumed a greater significance and plays a comprehensive role in organizational management.

HRM is quite an omen defined as productivity through people. It is considered a scientific process of continuously enabling the employees of an organization both in their individual capacities and as members of groups, both as managers or other ranks, to improve their competence and capability to perform their present as well as future expected roles so that the roles of the organization are achieved more fully and at the same time the needs of the employees are also met to an adequate extent. It is seen as getting the employees in the organization to add value to the organizational processes and to contribute to the organizational development.

The basic philosophy behind this type of management is that as the products, equipments and stores need physical inventory, human resource, the most important asset of organization, needs inventory too. As a Chinese proverb suggests that “if you wish to grow something for a season grow mangoes. If you wish to grow something for a year grow rice. But, if you wish to grow something for a life time grow man power.”

A firm therefore focuses on the maximum utilization of human resources in an organization to get the maximum out put.

It was against this back ground that when multinational corporations, with them, brought the concept of HRM in mid 90’s, it was significantly advanced by PIDC, which was set up with a mandate of accelerated industrialization of Pakistan. A significant step to proliferate the concept of management was the setting up of the Pakistan Institute of Management (PM) which emerged as a leading organization in the Human Resource Development (HRD) field in the 1960’s.

Later on, State Bank of Pakistan and private sector commercial banks and insurance companies set up their in-house T&D establishments. Gradually, the leading universities set up Public Administration departments and with this developed the basic know-how among the industrialists about HRM. This led to the setting up of separate HR departments by not only the leading organizations, but also by the smaller ones.

HR departments in the country were set up with the claim of developing congenial atmosphere within organization, increasing the employees’ involvement and commitment to the organization while pursuing professionalism in management’s operations. Nevertheless, all the said prophecies seem to be razed to the ground when one sees the old problems still persisting and continuing with organizations embroiled in strikes and if not strikes then, facing strong resistance from employees. Despite of its presupposed “panacea to all organizational ills”, nature, no organization today can claim of being 100 per cent free from HR problems such as low motivation in employees, lack of commitment and high turn over.

However, it is not the failure on part of firm itself but it shows lack of practising in its true spirit. Though the companies in Pakistan have started recognizing the growing importance of HRM, yet very few are conceptualizing them in strategic terms.

Many organizations have as a fashion titled their Personnel and Administration departments as HR department, while frequently practicing reactive HRM. The managers heading such departments are hardly trained in HRM techniques and practices. That’s because most organizations have just to keep in line with the ongoing trend, have created HRM sections within the personnel. As a result their problems are compounded and opportunities missed.

The approach to HRM differs from organization to organization depending on how much it is valued by the management. In Pakistan, unluckily at this stage, managements thought is dominated by the efficiency criterion as spelled out by Adam Smith’s famous dictum of “ wealth criterion through the efficient use of the factor of production.” In this scenario there is a deliberate de-emphasizing of the importance of human resources as in Adam Smith’s thinking labour was the last important of the factors of production.

There is no conscious attempt to improve the productivity and quality of human resources. Development of HRM as against conventional personnel management is indeed a neglected activity and even though many of the companies possess ISO 9000 certification they are still working with the obsolete system of personnel administration.

In most of the companies, personnel departments have been transformed to the HR department while maintaining the same old staff and not inducting HR experts i.e. there is just the change of name and not the structural change. People who are not even aware of the basic terminologies of HRM are helpless in implementing and performing the core functions of HRM.

Moreover, because of the managements ‘ favouritism and nepotism, the core functions of HRM i. e. recruitment and selection, training and development and performance appraisal, cannot be implemented.

Even in organizations with educated and experienced staff, due to the lack of cooperation on part of the management, the department cannot carry out its functions. Bilal Ahmed is an HR manager in one such textile unit where it is always difficult for the department to bring in new policies because of the resistance by the uneducated old staff that enjoys management’s favours.

“We are not authorized to perform the functions of HRM,” complains Mr.Bilal. He says that in “seth” owned companies, owners always seek their interest and profit and do not consider employees as an asset. They believe that practicing HRM functions demands investment in employees while making them more powerful. Therefore, they are always reluctant in facilitating operations of HR department.

Economies and businesses all over the world are facing new trends of globalization and free market. HRM in Pakistan was adopted in response to these challenges and to speed up the pace of economic and business activities. However, HRM is failing to do so. The concept of HRM is still in its preliminary phase in Pakistan and in small business it is almost non existent.

Today, businesses, small and large, seem inclined to introduce the HRM to manage their workforce efficiently. But developing an HR department with a head is all cosmetic measure unless the company has a desire to invest and to accept the real essence of HR development.

This transformation from old and rigid administrative structure to the new HRM techniques needs changes in managements’ mindset. Otherwise, this fad of setting up BR departments, now in quandary will not bring required substantial changes in Pakistani industrial set up.