“Importance of HRM”

Human Resource Management (HRM) is a modern approach of maintaining people at workplace

which focuses on acquisition, development, utilization and maintenance of human resource.

HRM is development oriented. It is concern of managers of all level and provides space for
employee involvement, performance and growth. Several companies nowadays prefer HRM to
personnel management because HRM plays vital role in maintaining quality team of working
experts. Besides, it has several importance which are discussed below.

To maintain quality of work life:

Quality of work life is the perception of employees regarding the relationship between working
condition with management. Simply, it is the relationship between employees and total work
environment.
Quality of work life is concerned with the employee’s perception of physical as well as
psychological wellbeing at workplace and it can be obtained by maintaining work autonomy,
work freedom, job recognition, belongingness, rewards, etc.

To increase productivity and profit:

Human resource management ensures right quality and quantity of personnel in workplace, apart
from which, it creates opportunities to facilitate and motivate individual and group of employees
to grow and advance their career. Motivated employees work hard to meet their personal career
goal which directly influences productivity of organization. Minimizing cost and maximizing
profit is the essence of productivity.

To produce employees who are easily adaptable to change:

Human resource management performs various functions, among which training and
development of employees is one of the vital ones. Training and development programs keep
employees updated with skills necessary to adjust with alteration of organization’s environment,
structure and technology.

To match demand and supply of human resource:

Human resource management probes existing human resource in certain interval of time to
identify if the company has adequate number of workers or not. In case when company has
inadequate human resource, human resource management performs activities like recruitment
and selection to balance the need. In the same way it lay-off inefficient employee in case when
the company has excessive employees.

To retain employees and motivate them to accomplish company’s goal:

Utilizing human resource to their fullest and maintaining them in the company for a long term is
a major function of human resource management. Under this function, HRM performs tasks like
providing fringe benefits, compensation and rewards to the deserving employees. These
activities do not only help in retaining employees in the company but also in achieving
organization’s goal effectively.

To recognize merit and contribution of employee:

Human resource management performs timely appraisal of employee’s performance in order to

recognize excellent and poor workers. The excellent workers are then rewarded as a return for
their contribution.

To sustain business in the market:

Human resource management makes sure that the company has the best employee because
promising employees are capable of taking their company ahead in the race by delivering
excellent results. This guarantees organization’s success and stability in future.

To resolve conflicts:

In any company, either big or small, conflicts may arise between any parties/group. Conflicts are
inevitable and they should not be ignored. Human resource management acts as a consultant to
sort out such conflicts timely and conduct other organizational activities smoothly.

To develop corporate image:

Every company should maintain good public image in order to sustain in the market. Any
individual would like to work for companies which are known for moral and social behavior. On
the other hand, companies that do not treat their employees in a good manner can run through
employee deficiency and even collapse.

“Current issues in HRM”

Human resource management (HRM) is adopted by many companies because of its benefits. But
at the same time, various challenges and issues may emerge in front of managers of human
resource department while performing their duties.

Any capable HR manager would work on these issues and challenges to prevent the
organizational activities from being obstructed. But they must first identify these issues. Such
issues and challenges are described here.

Recruiting new staff:

Companies sometimes need to recruit new talent for various reasons such as an increase in
project scope, operations. While recruiting, HRM faces major challenges i.e. selecting the best
candidate and making the hired candidate familiar with the environment and culture.

HRM has to select such candidates which are not only technically expert but socially too because
the company cannot receive expected output from employees who are unable to socialize. This
affects the productivity of the company.

Retention:

Hiring employees is not only the challenge that HRM faces; retaining them is also one. Retention
of employees is essential to minimize employee turnover rate. This is a major challenge for
HRM because of following reasons:

i. Contingent workforce:
The contingent workforce includes part-time, temporary contract and work-at-home employees.
Maintaining such employees in the company is a challenge because they are less attached to the
company. So it becomes a major duty of HRM to make such employees feel that they are a part
of the company in order to retain them for a long term.
ii. Demand of expert employees:
Personnel with greater professional and technical knowledge are highly demanded in the job
market as such employees have the ability to keep their company ahead in the race. Such
employees are an invaluable asset for any company and HRM should focus on maintaining them.

Training:

Skilled workers are the key to the smooth functioning of the organization. Therefore, HRM
should manage on-site (within the workplace) as well as off-site (outside the workplace) job
training for employees.

So how is training a challenge to HRM? Before organizing training programs, HRM should
answer following questions:

 What kind of training programs are currently required?

 What is the objective of the training?
 How to make them effective?
 Who are the target groups?
 How much do the programs cost the company?
Not always, are these questions easy to answer. Finding out all the factors affecting the training
like time, location, cost, etc. and making a clear roadmap in establishing an impactful event can
be a big issue and working it out, a big challenge.

Productivity:

Maximizing profit and minimizing cost is the essence of productivity. Higher the productivity
level, more successful will be the company. HRM should always focus on maintaining high
productivity level.

Despite HRM’s continuous effort, the company might sometimes get an unsatisfactory result. In
such case, it should thoroughly analyze the situation and make a proper conclusion i.e. whether it
is the result of inefficient employee or inadequate resources. If an inefficient employee is the
case, HRM should look forward to train employee, or even recruiting new staffs while it should
find alternative resources for sufficient input if inadequate resources are the case.
Health and safety:

It is one of the essential functions of HRM to collect its staff’s complete information, including
health information. It is necessary for employee’s personal safety. Keeping health information
about employees help the company in knowing what kind of tasks or activities are safe for their
employees to participate in.
Maintaining health information is also necessary to avoid the risk of legal complications. Several
companies at present provide health insurance to its employees as a fringe benefit. In lack of
proper health information about employees, various legal issues may arise when such insurance
is claimed.

Workforce diversity:

The composition of the workforce is getting diverse at present situation. Here diversity is
not only created by age, gender, educational background and religion but also by the
nature, personality and background of workers.

With more diversification of workforce, issues related to bullying, harassment,

discrimination, etc may arise, to control which HRM should formulate and implement
strict rules and regulations.

Payroll:

Payroll is a written document which provides information about the company’s employees along
with the amount of remuneration to be paid.

HRM has to conduct a number of tasks every day. In this process, HR manager might forget to
pay its employees, if not then he can forget the amount to be paid to the individual employee.

With proper maintenance of payroll, HR manager will be able to pay right amount to right
employee at right time, which is essential for extracting satisfactory output from employees.

Globalization:

Globalization is a process by which a business firm or organization starts operating on an

international scale, creating international influence.
Internationalization of firms is obviously a Sign of Success but it is a challenge at the same time
because globalization invites issues related to unknown language, laws, work ethics, attitudes,
management approach, culture and tradition.
A human resource manager will need to deal with more heterogeneous functions such as
scheduling meetings, holiday management, human resource outsourcing, etc to overcome the
challenge.

Discipline:

Discipline is one of the important issues that HRM needs to handle at present days. Lack of
discipline causes various problems which ultimately affect the productivity of the company.

For an instance, when discipline is not maintained, employees neglect their responsibilities and
duties. They may procrastinate their tasks and may misbehave with co-workers, leading to a
conflict that consumes time as well as energy to resolve. The ultimate result of these activities is
decreased productivity of the company.

Advancement in technology:

With rapid advancement in technology, companies nowadays require such human force
that has the ability to learn and cope with the changes at an opportune moment.

Technological changes must be taken into consideration by any kind of company. It is because
the present world demands every firm to move along with the change, or else be left behind and
get extinct.

Technological changes influence overall nature of work and the company will need to find out
employees that are capable to adjust with the change. During this process, unemployment, as
well as employment opportunities, arise, creating new challenges for HRM.

Management of information:

Up-to-date information is essential for the operation of any company. Information may be
collected internally as well as externally. Once collected, all the information should be safely
maintained so that they would be readily available when needed in future.
On the other hand, information is also essential to clear queries of employees. HRM should be
able to present relevant facts and data while clearing such queries.
Managing any kind of information is a challenge to HRM because it should know which
information are actually useful and which are not. After distinguishing this information, it should
select such method of storing information which is safe as well as reliable.

Organizations Selected to be researched:

Name Type

Orient Manufacturing

Al-Habib Industries` Manufacturing

Hussain Textiles Manufacturing

Engro Chemicals Manufacturing

GO Petroleum Manufacturing

Bank Al-Habib Service

TCS Service

EFU Insurance Service

Leopard Courier Service Service

State Life Service

Literature Review

Orient Group:

Introduction:

Who We Are?

Orient is a consumer goods company who over the past decade has evolved as a brand by
completely revolutionizing the lifestyles of thousands of people across the country. Being one of
the fastest growing enterprises, we have emerged as a symbol of innovation in Pakistan.

What We Do

Working tirelessly towards bringing multiple product lines in

Pakistan and introducing them with professionally managed
marketing activities, we have secured a reputable position in the
country’s manufacturing & services sector.
By maintaining the brand’s true innovative essence in terms of technology, research, &
development, we address pain points of consumers by working on ideas and concepts that have
the aptitude of bringing a positive change. Understanding the dynamics of the digital space,
Orient strives to achieve success in this ecosystem by delivering innovation along with service
excellence.

Vision:

“We inspire our world to experience new possibilities, through innovation and service
excellence, for a healthier and safer future.”

Mission:

“We are committed to offer a wide range of reliable products and services to attain market
leadership. We are determined to maximize value for all stakeholders through constant
innovation, high-performance culture, and the ultimate consumer experience.”
HIERARCHY OF HUMAN RESOURCE DEPARTMENT

Manager HRM

Assistant Managers Assistant Managers

Ex. Assistant Ex. Assistant

Managers Managers
Al-Habib Industries:

AL-HABIB INDUSTRIES(AHI) was founded in

Karachi, Pakistan in 2000 and a growing name in
the field of terry towel Items in Pakistan and
abroad. AHI employs 170 people at its 20000
square feet facility in a total area 1.25 acre site.
Having the monthly capacity of manufacturing 10
containers a month mix of towel and bathrobes,
our company contributes into the economy of
Pakistan and exports to most of the regions.

We offer a vast range of products, which speaks

expressively for its quality. From the glorious designing traditions to the soft, bright touch of
spring, we cater to the ever- changing vogue. These products are made to your exact
specifications and composition.

We also specialize in Bathrobes and other Terry Products in plain, dobby and jacquard weaves
with hotel logos or with embroideries according to customer requirement with competitive
prices.

We believe in total quality starting from procurement of quality raw material, quality at each
production stage & at the completion of production process. We always try to achieve utmost
customer satisfaction and render the best service within its quality, reliability and stability
policies.

We strictly believe that our planet is our home and we are doing our best efforts to make sure
that our home remains clean and pollution free. At AHI, the management is well aware of this
global hazard and has taken substantial initiatives for the preservation of the environment.

Hussain Textiles: