In most progressive companies, the top management asks their Human Resources (HR) department to review the best practices implemented in comparable organisations.
HR then evaluates what practices they may adopt from the perspective of company culture and business needs. The purpose of this exercise is to strive for management excellence and improvement in the projection of the company’s image in public.
To identify some of the best practices followed in progressive companies, it is essential to first mention a few bad practices that companies often indulge in. Since human resources are a crucial element for operating industrial and commercial establishments, most bad practices occur in this area. Unscrupulous employers don’t issue appointment letters to employees, avoiding legal requirements in the event their services are terminated.
Some of those who give appointment letters tend to circumvent the law of the probationary period. As the new hires are confirmed upon completion of the statutory three-month probationary period, the employers terminate their services a few days prior, thereby depriving them of confirmation. Employers continue to repeat this process three to four times before confirming them in the job or terminating their services permanently. Such employees do have legal recourse, but they often don’t avail themselves of this option due to the high costs involved and the prolonged nature of litigation.
The management staff of poorly run organisations usually lack competence and supervisory skills. Instead of promoting the company’s interests, they look after their own welfare and prefer the company of sycophants. The trickle-down effect of such an approach by the managers is worse. The output of workers reporting to them is extremely low, and they tend to remain away from work on one pretext or another. The cleverest among them become office bearers of the union and do nothing, nor do their managers discipline them.
In organisations not managed professionally, employee promotions are not based on merit but on the personal preferences of their supervisors, or the contacts one may have, or the nuisance value of the incumbent. The person making the decision visualises how the employee being promoted may be of use to them in achieving their personal agendas outside the job. When there is indiscipline all around, labour unions also aspire to obtain the benefits they can derive by exerting their power as representatives of workers.
In Pakistan, best practices are primarily followed by multinational companies, as well as a few other professionally run organisations.
In mid-1977, when I moved from a state enterprise to an American multinational company in Daharki, Sindh, it was amazing that all officials of the Collective Bargaining Agent (CBA) union would fully discharge their duties. The General Secretary of the CBA would seek his supervisor’s permission to visit HR for any union-related work. The CBA’s activities remained confined to only those functions as prescribed under the law. At the same time, the management would honour the CBA’s rights and ensure that no impediments were caused in the smooth fulfillment of their responsibilities.
The level of compensation and benefits, both for the management and non-management employees, was one of the best in the country. Simultaneously, the leadership expected employees to deliver in accordance with their respective job descriptions. The management staff was called ‘Management Professional and Technical’, which would imply that all employees were treated equally in terms of salary and benefits. An industrial relations officer would be given the same salary package as an operations engineer.
The employees were closely supervised by managers, who would periodically apprise them of areas for improvement and their strengths. The system of annual performance evaluation of employees was unique and competitive. A committee comprising all the section and department heads would discuss and review the performance of every management employee, presented by their respective managers. The annual increment of employees would be based on the rating agreed and assigned by the committee. The promotions to employees would be given on merit and subject to the availability of positions.
The safety of employees at work and adherence to occupational health requirements were considered of utmost importance. New jobs would not be undertaken unless the management was sure that they would be safe to carry out. Employees would be given attractive gifts for achieving the assigned targets without any lost-time accidents, which would keep them safety-conscious not only for themselves but also for their colleagues.
HR policies relating to both the management and non-management employees were clearly defined and the employees had access to them without any restraint. The terms and conditions of employment and the benefits available were outlined in a booklet distributed to all non-management employees after the conclusion of the settlement with the CBA, every two years. With transparency in employment-related rules, there was hardly any room for grievances among employees.
Following fair and ethical practices involves expense, but the dividends the companies get more than compensate for the cost incurred.
The writer is a consultant in human
resources at the Aga Khan University Hospital. He can be reached at: parvez.rahim1947@gmail.com
