Education as main factor of poverty alleviation

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It is widely realized that education is amongst the single most important factor contributing to poverty alleviation. Education plays an overwhelming role and has a cross cutting impact on all aspects of human life. It is a vital investment for human and for the economic development. Unfortunately, Pakistan's standing on this front has ever been poor, as it can be seen in Table:


Public Sector Spending (As % GDP)

Literacy rate in (%)

























Sri Lanka









Source: World Bank, UNDP, UNESCO, FBS, Ministry of Education Figures for latest available year

With public spending on education as a percentage of Gross Domestic Product amongst the lowest in the entire sample, the outcome with regard to literacy levels is not surprising as it is very low. While the literacy rate has improved slowly over a period of time, Pakistan's elements on this front continue to rank at the lowest end of global rankings. Within the region, only Bangladesh has the worst output on both indicators, spending by the public sector as well as literacy rate. Nepal spends a little bit more than Pakistan on education, while its literacy rate is slightly higher.

According to the newest Pakistan Social and Living Standards Measurement Survey 2008‐09, the overall literacy rate (age 10 years and above) is 57% (69% for male and 45% for female) as compared to 56% (69% for male and 44% for female) for the year 2007‐08. The data shows that education remains higher in urban area (74%) than in rural area (48%), and it is more prevalent for the men (69%) compared to women (45%). However, it is prominent from the data that overall female literacy is very much rising over the time, but the progress is unevenly distributed across all the provinces. When deeply analyzed provincially, literacy rate in Punjab stand at (59 %), Sindh (59%), Khyber Pakhtunkhwa (50%) and Balochistan at (45%). The literacy rate of Sind and Khyber Pakhtunkhwa has improved a lot during the period of 2007‐08 to 2008‐09.

In Pakistan there are many Public and Private Universities and they are governed by the Higher Education Commission of Pakistan. A complete list of these institutes is as follows:

















Northern Areas



















Human Resource Management:

The Human Resources can be easily defined as the total knowledge, skills, creative abilities, talents and the aptitude's of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization, by Ankur (July 2009).

Human Resources are both important from the national point of view to the organizational point of view. The Human Resources are multidimensional in nature and thus a study has evolved by the name of Human Resource Management, and the different scholars explain HRM as the maintenance of qualitative human relations in the organization by the development, application and evaluation of policies and procedures and programs relating to the human resources to optimize their part towards the realization of organizational objectives.

In other words, HRM is concerned with getting the better output with the collaboration of the people. It is a vital but distinctive part of the management, connecting with the people at work and their relationships within the enterprise. HRM helps in achieving maximum individual development, desirable working relationships between the employees and employers, employees and employees, and effective modeling of the human resources as compared with the physical resources.

Major Roles of Human Resource Management:

There are many different roles of Human Resource Management and for simplicity they are categorized into three major sections and they are as follows:

Personal Aspect:

Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

Welfare Aspect:

Welfare aspect-It deals with working conditions and amenities such as canteens, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

Industrial Relations Aspect:

Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Topic Background:

This research is about the "Effects of Human Resource Practices and Its Impact on the Education Sector of Pakistan". First I will discuss the best human resource practices and its implications and then to calculate the impact on the education sector I will evaluate the employee's performance. Changing business environment in knowledge economy has made adoption of human resource (HRM) imperative for competitive advantage. The impact of HRM practices on business performance has been extensively studied in the recent past. These studies have found a positive association between HRM practices and firm's performance (Becker & Husekid, 1998; Chang & Kuo, 2004; Jarventaus, 2007; Riziz & Croucher, 2008; Sang, 2005).

Reasons for Choosing the Topic:

Pakistan was formed in 1947 and since that time Pakistan is considered to be an underdeveloped country, a country can only be classified as a better one if the people of the country are well educated.

These institutes have been working for some time but they contribute only 57% to the literacy of Pakistan. As there has been quiet diverse Human Resources (Teachers) been employed in these institutes. And these institutes fail to collaborate with the needs of the employees of the organization, thus affecting the quality of the organization, which ultimately affects the education system of Pakistan.

This research will contribute to the educational institute's employee's performance, which will ultimately improve the organization's performance.

Study Objective:

In Pakistan not much research has been done on the relationship between the HR practices and the employee's performance in the education sector. The objective of the study is to bring close to the attention of the HR managers the importance of the best HR practices. As they will employ it in the organization and with that they can improve the overall performance of the organization. The other main objective of the study is this that I will individually evaluate and calculate the effect of best HR practices with the employee's performance.

Research Question:

In the research I will try to make the relationship between the employee's performance and the organizational performance, and then there will be another relationship between the Human Resource Management practices and the employee's performance.

Research Limitations:

Literature Review:

Lately, human resource management has emerged as an essential factor for sustained competitive advantage. Research highlights that organizations develop sustained competitive advantage through management of scare and valuable resources (Barney, 1991). The human resource enables organizations to achieve optimization of resource, effectiveness, and continuous improvement consistently (Wernerfelt, 1984). An organization take time to nurture and develop human capital in the form of knowledge, skills, abilities, motivation, attitude, and interpersonal relationship, and makes it difficult for competitors to imitate (Becker & Gerhart, 1996). Pfeffer (1994) stressed that human resource has been vital for firm sustained performance. In knowledge economy, the human resource has been recognized as a strategic tool, essential to organizational profitability and sustainability. This realization has led to the new role of human resource managers as strategic partners in formulation and implementing organizational strategy (Myloni et al., 2004). Organizations are pursing proactively human resource management (HRM) practices and systems to capitalize on strength of this vital asset for sustained competitive advantage in knowledge economy (Jackson & Schuler, 2000; Mac Duffie, 1995)

Review of literature indicated essential HRM practices as workforce planning (Matthis & Jackson, 2004); job analysis (Cascio, 2006; Dessler, 2003); training and development (Kundo, 2003); recruitment and selection (Kulik, 2004); compensation and reward (Milkovich & Newmen, 1999); performance appraisal (Bernardin & Russel, 1993); career management (Schein, 1996); human resource information system (Wolfe, 1998); quality of work life, personnel diversity, employees attitude surveys (Armstrong, 2005; Bracken, 2000; Hayes, 1999).

In a meta-analysis of 104 articles, Boselie et al., (2005) concluded that the top four HRM practices are efficient recruitment and selection, training and development, contingency and reward system, and performance management that have been extensively used by different researchers.