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
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
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.
"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.
It would be beneficial to briefly pen down the
history of HR. Some pertinent points in this respect are as under:
Paternalistic approach was followed before 1600s. Even in many family
dominated business this is still continuing.
The rise of HR as a discipline was seen during and after Industrial and
Commercial Revolution in Europe during 1600s and 1700s.
During 1800s human problems were caused by industrialization.
Accordingly Welfare Secretaries were appointed to handle HR problems.
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
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.
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
Several models exist for HR activities. The current
one is expected to successfully tackle the following:
Human Resource Planning - Strategically to be done.
Recruitment- Hiring the Best.
Orientation & Training - Inducting with an assured confidence.
Development - Continuous professional education (CPE).
Appraisal - To identify the best for retention and weeding out the
Compensation - Payment for value creation.
Services - Motivating the employees through diversified employee
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:
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.
Business schools should introduce HRM/HRD as a specialization in MBA
programs to strengthen the supply side of human resources.
Private Sector initiative be unleashed to offer short courses to bejewel
business executives to equip themselves for tackling HR problems.
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.
SAARC should pursue the agenda of HRM/HRD aggressively.
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.
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.
In view of growing global challenges, quality work force of
international standard be developed as supply side logistics.
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
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
Equip IT users with broad knowledge and understanding of basic concepts
Potential areas where IT can be used.
Planning for IT projects and managing their development.
Managing their development and implementation.
Suggested programs to achieve above four aims are
Systems Analysis & Designs
Operating Systems (DOS, UNIX, Windows)
The expected outputs of the above programs are
Design of IT based system
Preparation of plans for implementation of IT projects
Software development techniques
Programming languages and operation systems
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:
1 SAARC- HDI Rank
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.
Suggested model for HRM/HRD for corporate sector is
— 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.