ABSTRACT

This study demonstrates the extent to which Pakistani multinational corporatations instill a strategic culture. Why this culture is vital and how HR management practices and decisions making can play an integral role towards achieving organization’s strategic goals. Most of Pakistan’s corporate culture is not in line with international accepted and practiced SHRM. However, SHRM exists because of its increasing adaptation of western management style and American influence. There are many obstacles in the holistic implementation of SHRM in multinational corporatations in Pakistan. Political expediency, religious, cultural and ethnic barriers, unethical practice and limited practical knowledge are few of the impediments standing in its way. A good number of people attribute religion of Islam as one of the factor to adversely affect SHRM to exist and practice in Pakistan. This is not at all true. Main factor is the culture developed in a particular organization. If that is not sound and strong enough, it cannot implement the Human Resource policies successfully. There may be conflicting policies while working on the lines of SHRM in the presence of old policies. The performance of company depends upon the human resource available with the company. If the policies are reviewed based on the management staff and skill, SHRM is capable of playing more positive role to achieve company’s objectives and goals. Some of researchers have worked on these lines and are optimistic that things can improve a lot but in their study they have observed that lack of literature and literary culture on the following topics and themes requires further study and assessment.

Objectives

There should be insight study on specific topics to ascertain the effect of religion, culture, society, ethics and politics to introduce SHRM in working system of Pakistani and multi-national companies. Since local companies have not adopted this system in Pakistan, therefore, extensive research has to be done in connection with introduction of SHRM. Pakistan is a country which is coming up in the comity of nations progressively and, therefore, it is time that researcher should concentrate on the possible introduction of SHRM in Pakistan. This research can cover following objectives:

Whether SHRM is prevailing in Pakistan

The role of SHRM to play in the ultimate success of companies in Pakistan.

The justification to introduce SHRM in Pakistan

The factor to affect SHRM in a Pakistan environment.

The question of this research is TO WHAT EXTENT HAS HR PRACTICES BECOME STRATEGIC IN MULTINATIONAL CORPORATIONS IN PAKISTAN?

With a view to ascertain the question and its answer through current practice, it is essential to examine as to what is HRM. Similarly, the significance of SHRM is also an important factor. SHRM originally started in North America that’s why it is suited to companies working in American environments. The topic of research is as to what extent has HR practices are strategic in Pakistan. For this purpose, one has to explore the research question / topic on the basis of religion, politics, culture and society and whether it is adaptable and adjustable in the local environment in Pakistan. Whether it is acceptable to society and community where ethics has great influence and impact. The point of discussion and focus of research on multinational companies in Pakistan in the background of culture of Pakistan will assist the researcher to identify and examine the research objectives of the above research question.

Context

Recently, lot of discussions about SHRM has taken place all over the world about SHRM based on its importance and successful results. Most of the researchers have conceived that in view of SHRM being an American system of management, it cannot work as such round the world. Since the business activities by multi-national companies are being expanded especially in developing nations, the researcher are interested to introduce SHRM as composite policies in various countries including Pakistan. The research will indicate whether SHRM is working or workable in Pakistan. This study will also give stress on the point whether it will be successful in performance and results. This relationship will also identify the strategies for the success of organization.

Review of Literature

Some researcher argue that SHRM is not a new arena; rather is just modification and polishing of HR policies in a strategic fashion. In comparison to the Japanese style of management, SHRM does not look like a remarkable innovation. Since the start, HRM looks to exist in organization (Nankervis et al, 2002). The relationship of HRM to strategic one has actually given birth to SHRM. To have competitive advantage, deriving a well-planned and masterly tailored way of getting organizational goal is a real challenge that is to be solved in a strategic way. Conversion of HRM from micro focused function to macro strategic role has taken place, where HR functions like recruitment; training and rewarding are not only in line with organization objective but also with one another. (See Budhwar, 2002, Lundy, 1994, Martell and Carroll, 1995, Ritson, 1999 cited in Khatei and Budhwar, 2000) SHRM concerns with contributions to make HR strategies effective and how these contributions are accomplished (Ericksen and Dyer, 2005 cited in Becton et. al., 2009). This involves designing and implementing a set of internally regular policies in order to ensure that human capital of an organization including employees, their knowledge, skills and capabilities contributes to achieve objectives of the company. (Baird and Heshoulam 1988: Richard and Johnson, Becton et.al., 2009).

SHRM is so developed and designed to assist the companies to meet the requirements of their workers while promoting goals of the company. HRM deals with any aspect that relates to employment / recruitment, their pay structure, pay package and allowances and their administration including work incentive, safety, leave and holidays.

SHRM is management of people by a system. It involves vision and advance planning for better supervision, administration and discipline while planning for the training, appraisal of performance and assessment technique of work done.

It is an established fact that companies which look after the needs and requirements of their employees properly cultivate an atmosphere favourable to increased production and profits. HRM is one of best system to achieve this. If the planning is made in advance and in time, the employees, their skill and performance is improved for the benefit of company instead of employing untrained and new employees – yet to be trained at certain cost and expense.

At the time of making out plan for