HUMAN

INTRODUCTION

RESOURCE

MANAGEMENT

Most people understand that quality human resources are a key factor for firms to sustain a competitive advantage in arenas of fierce global competition. Classical contingency theory claimed that an organization should adapt its structure to the environment in which it exists to achieve and sustain competitive advantage. An organization should not only adjust its structure to the environment, but also its organizational processes and the management control system. A human resource management (HRM) system is no exception. Consequently, organizations are likely to be challenged to adapt their HRM system to the business surroundings in order to achieve and sustain a competitive edge. HRM is a business system. A salient objective of these systems is to process and control people in firms so that the employees are better able to contribute to the goals of the firm. A HRM system is composed of four sub systems. These elements are 1) an employment management system, 2) a working conditions management system, 3) a reward management system, and 4) a personnel evaluation management system. Employers recruit the necessary people, and assign (or sometimes re-assign) them to produce value added outputs. Well designed HRM systems should also develop the faculty of employees and sometimes control the number of employees. Employers should provide good working conditions for employees to perform jobs effectively and efficiently. They should also reward employees for their service with wage, bonus, promotion and recognitions.

HUMAN RESOURCE MANAGEMENT IN JAPAN

HRM in the Period of the 1960s to the 1980s A hallmark of Japanese firms during the successful three decades (1960 to 1980) was the people oriented HRM systems. This framework placed an emphasis on employees abilities. HRM of Japanese Companies in the Global Competition Age of the 1990s Japanese introduce performance oriented HRM in the beginning of the 1990s, which provided a foundation for more Japanese companies to adopt this style of HRM in the 2000s. In most of the Japanese firms, there is a life long commitment between the Organization and the individual. Japanese firms hire fresh graduates, train them, and keep all of them on the payroll till the age of fifty-five that is the retirement age. This System of permanent employment provides job security, guarantees livelihood till Retirement brings harmony to the enterprise, results in greater human interaction and Growth of fast friendship, promotes strong corporate loyalty, trust, high level of

Motivation, group effectiveness and total commitment on the part of the employees.

Human Resource Management In Pakistan

Over the last decade, Human Resources Management has evolved as a significant part of every organization and people in Pakistan have come to realize the importance of having a fully functional HRM department in every organization. Previously the HRM was mistakenly considered as the administrative department responsible for minor tasks. However this view has now been corrected as the significance of the functions and responsibilities of the HRM department became clear to the multinational organizations in Pakistan. Nowadays every small and big organization has a fully functional HRM department which makes sure that the functions of the organization go smoothly. There are many aspects that lead to becoming a valuable HR manager and performing the tasks at hand properly. Moreover the HR managers can give valuable tips for the newcomers in the professional field and the job seekers. Unfortunately not much heed has been paid to Human Resource Management in Pakistan. We are still in the process of renaming our Personnel Departments as Human Resources , whereas the developed markets are raising questions: Is HR a career in crisis? The fact is, the role of HR is evolving constantly and we need to move away from the traditionally administrative function and consider it as a major contributor in organizations successes by aligning the HR goals with the Organizational Goals. Our situation is different to that of the developed markets because HR here is mainly practiced by multinational companies. A few enlightened Pakistani firms also have HR functions but mostly intermingled and not well defined. There is an increasing trend of outsourcing the HR functions like recruitment and selection, training and development. In many organizations various Western HR models are applied as such ignoring the cultural difference, infrastructure difference and size of organization. However, the criticisms about HR seem to be the same around the world and this is at the heart of the issue. In most of the organizations in Pakistan the top management suddenly discovers that the solution to all their problems is in establishing an HR department. HR Manager is hired and the HR professional comes in. First of all he/she has double pressure on him/herself. He/she has to develop an HR department and for that he/she needs to design all the required formats and flowcharts of processes that fit to that organization. He/she also looks into problems that are urgent and need his attention and then comes the operational side of HR; recruitment and selection, training and development, performance appraisal, compensation and increments etc. All the key people start pushing him/her from all sides. Top management pressurizes him/her to show quick results. And the HR Person is left with confusion with what to do and what not to do. The ongoing market trend therefore asks the institutes to develop a corporate academia linkage so as to discover that what HR related courses must be taught to the HR students. Just teaching the courses is not enough preparing them to deal with the professional life issues that may arise.

THE COMPARISION BETWEEN HUMAN RESOURSE MANAGEMENT AND PERSSONEL MANAGEMENT

Human resource management system
Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

Personnel employment system

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization. Personnel management is the planning, organizing, compensation, integration and maintainance of people for the purpose of contributing to organizational, individual and societal goals.

Personnel Management is that part which is primarily concerned with human resource of organization.

Human Resource Management System

Positive aspect of Japanese HRM system should be included in Pakistan HRM system
Followings suggestions are made regarding Pakistan HRM system that is perceived from Japanese HRM system: y y y y y y y y y y y y y performance oriented HRM control the level of their workforce through the labor market bonus system white collar employees discretionary power the management by objective (MBO) system the evaluation process seniority based pay and promotion family concept of company friendly relationship between unions and management selection and continuous training personal assessment system job rotation single status