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 (PIM) which emerged as a leading organization in the Human Resource Development (HRD)
field in the 1960 (Jamil, 2005).
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 Human Resource Management.
This led to the setting up of separate Human Resource 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 percent free from HR
problems such as low motivation in employees, lack of commitment and high turn over.
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 ‘favoritism 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. Observation of most of the managers at textile
sector is that for the departments. It is always difficult to bring in new policies because of the resistance by
the uneducated old staff that enjoys management’s favors.
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 HR departments, now in quandary will not bring required substantial changes in
Pakistani industrial set up