1

STRAT ROLE OF HRM

In an era when intellectual capital is mightier than other physical or financial capital, the

employee is as powerful as the consumer was in the age of materialism.

Diedre Maken ,2000

2

STRATEGICORIENTATION------- HRM

Committed and competent work force. How?

Adapt to changes in environment. How?Balance between capital and labor. How?Planned HR deployment for the future.

How?Building incentives. How?Safeguarding company interests. How?

3

SOURCE:PAKISTAN ECONOMICAL SURVEY 2005-06 3

TAHA WAHABSYED SHIRAZ RAZA NAQVI

4SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 4

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

INTERNATIONAL POPULATION RANK: 06TH

POPULATION : 171 MILLION

GROWTH RATE : 1.51%

LABOR FORCE : 54.92 MILLION

EMPLOYED LABOR : 51.87 MILLION

UNEMPLOYED LABOR : 3.05 MILLION

5SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 5

LABOR FORCE BREAK DOWN

YEAR TOTAL RURAL URBAN

2004 45.76 31.07 14.69

2005 46.82 31.79 15.03

2006 47.67 32.37 15.3

2009 50.79 35.54 15.25

(MILLION)

6SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 6

FORECASTED POPULATION & LABOR FORCE

PROVINCIAL DISTR OF WORKFORCE/ GENDER

(IN MILLION)

AREA TOTAL MALE FEMALE5.05

PAKISTAN 54.92 42.44 12.48

PUNJAB 33.04 24.18 8.86

SINDH 13.46 11.31 2.15

BLN 2.17 1.90 .27

KP 6.25 5.05 1.20

7SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 7

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

(AREAWISE POPULATION)

(% SHARE)

YEAR TOTAL RURAL URBAN

2004 100 67.90 32.10

2005 100 67.90 32.10

2006 100 67.90 32.10

8SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 8

FORECASTED LABOR FORCE PROJECTIONS

(MILLION)

(INCREASING 0.94 MILLION PER YEAR)

YEAR TOTAL

2006 47.67

2010 51.46

2015 56.18

2020 60.89

9SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 9

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

UNEMPLOYED LABOR FORCE

YEAR TOTAL

2006 3.66

2010 4.29

2015 5.08

2020 5.87

(MILLION)

10SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 10

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

UNEMPLOYED LABOR FORCE

YEAR TOTAL

2006 07.68

2010 08.34

2015 09.04

2020 09.63

(IN % OF LABOR FORCE)

11SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 11

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

OTHER SECTOR (EMPLOYED LABOR FORCE)(% OF employed LABOR

FORCE)YEARS AGRICULTURE MINING &

MANUFACTURINGCONSTRUCTION

2006

2010 44% 13% 6.3%

2015

2020

12SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 12

FORECASTED POPULATION & LABOR FORCE

FOR PAKISTAN

OTHER SECTOR (EMPLOYED LABOR FORCE)(% OF employed LABOR

FORCE)YEARS TRANSPORT SERVICES OTHERS

2006

2010 5.5% 13.7% 2.3%

2015

2020

13SOURCE:PAKISTAN ECONOMICAL SURVAY 2005-06 13

FORECASTED POPULATION & LABOR FORCE

EMPLOYMENT STATUS BY CLASS/REGION- 2008-09

(IN MILLION)

STATUS TOTAL URBAN RURAL

EMPLOYERS .47 .34 .13

SELF EMPLOYED

17.06 4.59 12.47

UNPAID FAMILY

HELPERS

14.45 1.75 12.7

EMPLOYEES 17.96 8.18 9.78

TOTAL 49.94 14.86 35.08

14

PAKISTANI DIASPORA

• Expand & upgrade skill/job capacity.• “Young workforce” dilemma will last up-to 2050. • Urbanization increased 7 fold. In 2030, 50% pop

ratio will be urban.• 7 million Pak living abroad. Remits $ 8 bill annually.• Expand NAVTEC, SDC & CWA• Close monitoring of Key Indicator for Labor Markets

(KILM).

15

RECRUITING TRENDS IN PAKISTAN

16

THE PAKISTANI SCENARIO

COPING WITH BRAIN DRAIN.UNEMP NUMBER PREPONDEROUS EFFECT ON

EACH VACANCYEVERY CANDIDATE NOT A SERIOUS CANDIDATE.

ANCHORED TO THE HOMETOWN.JOB ASSURANCE FOR TECHNOCRATS.

MIDDLE MANAGEMENT GROUP BELIEVES IN HORIZONTAL MOBILITY.

TESTS ARE UNSTRUCTURED AND UN VALIDATED.EVERY VACANCY IS NOT ADVERTISED

A BIRD IN HAND IS WORTH TWO IN THE BUSH.

17

RETENTION

• Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs.

18

DUAL CAREER PATH SYSTEM

• A dual-career-path system enables employees to remain in technical career or move into a

management career path.

Pak Companies Recruiting on the Web

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

(Source: ROZEE.PK)

20

Obtaining Greater Employee Commitment and Performance for maximum results

Talat NaseerGlaxoSmithKline

21

The reality

• Your company is a short stop• Globalization• Skill shortages• Dynamic work and corporate environments• Mergers and Acquisitions• Outsourcing and off shoring

22

Developing a commitment strategy

• Developing Ownership• Communication Programs• Leadership Development

23

HUMAN CAPITAL

Represents the human factor of the organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. The human

elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly

motivated can ensure the long-term survival of the organization.

Bontis 1999