PROFILE NASIM-UL-HAQ
COLUMN FOR THE RECORD
POLITICS & POLICY LIBERALIZATION: A BLESSING OR AN OMEN
SOCIETY HUMAN RESOURCE MANAGEMENT & DEVELOPMENT

 

HUMAN RESOURCE MANAGEMENT & DEVELOPMENT

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By Prof. Dr. Khawaja Amjad Saeed
Nov 04 - 10, 2002
 

It is generally believed that the use of assets make things possible. However, human resources make things happen. Mind is considered as the ultimate weapon in harnessing everything to one's advantage. When machines are used, these depreciate. When mind is used, it appreciates. The process is the same with divergent results.

The importance of human resource management and its development is stressing an obvious. The 21st Century Challenges can be met with an assured confidence through HRM/HRD revolution. No activity can be undertaken without the use of quality manpower.

The game of management has all along focused on five Ms namely, men, material, machines, money and management. The role of men (lst "M") is of pivotal nature and extends to all other "Ms". The first M (men) develops plans for optimal use of material; it prepares productive plans for 3rd M (Machines). It plans most profitable use of the fourth "M" (Money) and plays vital role in fifth "M" (Management) to help develop plans for achieving the five internal objectives of an organization, namely, profitability, productivity, growth, leadership and market penetration and two external objectives namely, meeting corporate social responsibility and successfully handling environmental issues.

The theme of the First International Conference was "Human Resource Management & Development". This was a generalized theme and, by Allah's grace, gave an excellent kick start to HRM/HRD movement. The theme of the present Second International Conference is "Role of Human Resource in creating Wealth for the Organization and the Nation". This is an excellent theme. It will motivate the corporate sector to help develop new and innovative approaches to logistically equip themselves to use "Human Resource" as a powerful factor to create greater and greater wealth and hopefully to share the same amongst the stakeholders. One of the topics for presentation in the Second International Conference looks at the theme of productivity sharing as an institutionalized measure to ensure peace, harmony and tranquillity in corporate sector. The theme of the Conference is gloriously supported by interesting topics for presentations including eleven aspects. This Cricket eleven approach will cover teamwork and company relationship, human resource knowledge for creating wealth, communication and public relations, digital divide and IT in human resource development, human resource accounting, human resource development practices in a multinational company, changing role: From Collective Bargaining Agreements (CBAs) to Productivity Sharing Agreements (PSAs) human resource accounting in practice, wealth, prosperity and productive human relationship, competency framework and human resource as a strategic partner in an organization.

ROLE OF EDUCATION IN ECONOMIC DEVELOPMENT

An accelerated pace of socio-economic development with wider sharing of the fruits generated by it is the crying need of developing countries. Democracies in developing countries are fragile as per capita income is low and the teeming millions, if not billions, are engaged in one struggle i.e keep the soul and body together. One wonders how much interest these people have in the debate on constitution of a country and related matters. It is generally believed that democracies can possibly work in countries if the per Capita income of an individual is above US $ 1,000. Therefore there is an urgent need to realize that education and training are strategic variables in planning for economic development. The contributions of education to economic growth and its productive role in creating wealth can be seen from the following aspects:

1) Quantitatively speaking, an elementary education for the mass of the people in a society leads to great economic gains. The people can learn through the written word and transmit as well as record their ideas more exactly. It enables them to keep accounts and assess the profitableness of their business activities and alternative ways of allocating their resources. A literate population can be made to cooperate for beneficial economic activities more easily than an illiterate one. They can thus work more effectively under a plan as well as independently in the pursuit of their self-interest. The result is that an increase of expenditure of a moderate nature on education produces very high returns. '

2) For the advancement of knowledge, education is a basic factor. Scientific knowledge itself is a basis for improvement of techniques of production in many industries in the contemporary world. Advanced education usually accompanied by research leads to the discovery of new frontiers of knowledge and opens up new possibilities of its application in the interest of economic development. Existing techniques can be adapted to new situations and new techniques can be discovered, thus leading to a more productive utilization of resources or even discovery of new resources.

3) "A sharp rise in quality of education", according to Benson, "produces economic returns even when it is not possible to specify what skills and attributes would be created or precisely how they would be used". Thus a liberal education which sharpens the intellect and broadens human faculties, may be as productive as more narrowly specialized forms of skills imparted through scientific and technological training. This points towards the danger of neglecting human disciplines and unduly diverting, resources towards instruction in scientific and technological fields.

HR—INRETROSPECT

It would be beneficial to briefly pen down the history of HR. Some pertinent points in this respect are as under:

1. Paternalistic approach was followed before 1600s. Even in many family dominated business this is still continuing.

2. The rise of HR as a discipline was seen during and after Industrial and Commercial Revolution in Europe during 1600s and 1700s.

3. During 1800s human problems were caused by industrialization. Accordingly Welfare Secretaries were appointed to handle HR problems.

4. During 1900s, large organizations started growing and HRM was taken as specialized subject. Fredrick W. Taylor advocated benefits of scientific management through improved productivity by utilizing workforce is a much better manner by operationalizing Taylor's Differentiated Wage Plan.

5. The 20th Century saw the Government legislations governing minimum wages, working conditions, trade unions, industrial relations, dispute settlement, safety, environment and various labour policies and related issues. Workforce was considered as human capital.

6. The 21st Century's clarion call is to use HRM/HRD as a powerful instrument for creating instrument for creating wealth for the nation, companies and individuals.

HR THE PURPOSE

Basic purpose of human resource is to improve productive contribution of people in organizations in ways that are strategically, issocially and ethically compatible for productive results through most effective use of four Ms namely Men, Material, Machines and Money. Four objectives of HR have been identified. The first one includes emphasis on employees to undertake innovative work to meet organization's internal and external objectives. The second one is generally termed a functional objective. Through this HR departments extend logistics for contributions to organizations. The third objective societal. Through this safety is ensured and environmental problems are tackled. The fourth one is personal. Through this a person extends contribution for value creation. The implementation of above objectives enables creation of wealth for the nation, organization and the employees.

HR ACTIVITIES

Several models exist for HR activities. The current one is expected to successfully tackle the following:

1. Human Resource Planning - Strategically to be done.
2. Recruitment- Hiring the Best.
3. Orientation & Training - Inducting with an assured confidence.
4. Development - Continuous professional education (CPE).
5. Appraisal - To identify the best for retention and weeding out the unproductive ones.
6. Compensation - Payment for value creation.
7. Services - Motivating the employees through diversified employee services programs.

A corporate model of HR activities has been suggested later to achieve the objective of creating wealth for stakeholders.

HR CHALLENGES AND SUGGESTED DIRECTIONS

HR challenges at macro and micro levels need to properly understood. In today's world these challenges are growing much faster than the pen which records these for cold print.

HR challenges and suggested directions to meet these are identified below:

1. Generating employment in SAARC is a great challenge. Entrepreneurial revolution is the crying need. Small & Medium Enterprises development and equipping younger generation to be logistically well backed with credit facility is urgently required. Entrepreneurial Training Institutes with quality cutting edge must be established by the Government to serve the growing younger generation.

2. Business schools should introduce HRM/HRD as a specialization in MBA programs to strengthen the supply side of human resources.

3. Private Sector initiative be unleashed to offer short courses to bejewel business executives to equip themselves for tackling HR problems.

4. On the lines of Institute of Chartered/Cost and Management Accountants, statutory recognition be accorded to the HR profession by establishing Institute of HRM/HRD so that quality supply side with full accreditation is assured to the potential employers who may benefit by setting the pace for creating wealth for sharing by stakeholders.

5. SAARC should pursue the agenda of HRM/HRD aggressively.

6. Based on the strong belief and advice of the World Bank Institute, three percent of revenues be earmarked by every enterprise and this amount be committed for HRD.

7. On the demand side, every employer must establish HRM/HRD department in their enterprise, hire the best talent in it and make contributions accordingly in achieving objectives of organization.

8. In view of growing global challenges, quality work force of international standard be developed as supply side logistics.

9. Ethical basis be operationalized and indoctrinated in the workforce to obtain desired results.

HRD EFFORTS—SELECTED SAARC COUNTRIES

Grameen Bank, ably conceived and operationally well managed by Prof. Dr. Muhammad Younus of Bangladesh, is an outstanding example of human resource development to create wealth and genuinely alleviate poverty.

Aga Khan Rural Support Program (AKRSP) of Pakistan is an example of expanding opportunities of means of wealth creation, credit and enterprise development through education including computer literacy through establishment of social organization, capacity building of local communities, water supply, family planning and basic health.

The role of NGOs and CBOs in other SAARC Countries is well appreciated. Their role ought to become more pronounced.

IT & HRD

For rapid IT education to equip human resources to accept the challenges of 21st Century, aims, programs and outputs must be comprehended with clarity. Some thoughts in this respect are shared below:

AIMS

1. Equip IT users with broad knowledge and understanding of basic concepts of computers.
2. Potential areas where IT can be used.
3. Planning for IT projects and managing their development.
4. Managing their development and implementation.

PROGRAMS

Suggested programs to achieve above four aims are identified below:

1. Systems Analysis & Designs
2. Programming Languages
3. Micro-Computer Applications
4. Office Automation
5. Operating Systems (DOS, UNIX, Windows)
6. Software Packages
7. 4GLs

EXPECTED OUTPUTS

The expected outputs of the above programs are visualized below:

1. Design of IT based system
2. Preparation of plans for implementation of IT projects
3. Software development techniques
4. Programming languages and operation systems

SAARC POSITION

Struggle is on for achieving higher literacy rates in SAARC. Maldives has the highest literacy rate but its population is too small — 260,000 persons. Sri Lankans have achieved above 90% literacy rates and rank No. 2 in SAARC. Indian, followed up Bangladesh, Pakistan, Nepal and Bhuttan are struggling to push forward on literacy front.

Based on UNDP Human Development Report 2001 which had the theme of "Making New Technologies work for Human Development", out of 162 countries ranking of "Human Development Index (HDI)", SAARC position is tabulated below:

Table 1 SAARC- HDI Rank

  Country Rank
1. Maldives  77
2.  Sri Lanka 81
3. India 115
4. Pakistan 127
5. Nepal 129
6. Bhutan 130
7. Bangladesh 132
Source: Extracted from: UNDP Human Development Report 2001: New York: Oxford University Press published for UNDP, pp 143-48, 2001.

The first rank (1) was shared by Norway and the last one (162) was earned by Siera Leone. Strategic moves must be unleashed to improve HDI for enabling the human resources to generate wealth and later share the same to achieve the wider goals of economic development.

CKO—A NEW POSITION

CKO (Chief Knowledge Officer) is a new position created in various enterprises abroad. The Canadians have taken up this initiative. CKO is a talented person who generates new knowledge and later disseminates it to other persons of the same organization. Thus, through this initiative, favorable and supportive environment is being created for innovative approach. This Is a positive logistic to improving productivity and creating wealth.

HRM/HRD—SUGGESTED MODEL

Suggested model for HRM/HRD for corporate sector is suggested below:

— Strategic HRM
— Human Resource Planning
— Staff Acquisitions and Retention
— Training & Development
— Performance Management & Appraisal
— Compensation Design & Administration
— Transformational Leadership
— International HRM
— Organization Communication

Operational details need to be developed for obtaining productive results to increase wealth and share the same with the stakeholders to enable them to enjoy high standard of living with an enriched quality of life.

Member Governing Council, International Federation of Accountants (1997-2000) President, South Asian Federation of Accountants (1997). President, Institute of Cost and Management Accountants of Pakistan (1997-2000). President, Association of Management Development Institutions of South Asia (AMDISA) (1993- 1996). Former Pro Vice-Chancellor, University of the Punjab, Lahore (1994-1996). Founder Director, Institute of Business Administration (IBA), University of the Punjab, Lahore (1973-1996). Dean, Executive Programs, Punjab College of Business Administration, Constituent College of University of Central Punjab, Lahore. Chief Executive, KAS Institute of Management & Information Technology, Lahore.