Pakistan is categorized in the list of developing countries. Many multinationals organizations are operational in Pakistan and along with these multinational organizations many large and small businesses are also operating in Pakistan. Now a day there is a trend of doing business that's why both experienced and well educated entrepreneurs are staring their businesses and this will a positive sign in the success of Pakistan.
In Pakistan, most of the organizations don't have a proper human resource department to perform all the related activities of human resource department. Organizations don't give importance to the human resource department and do not realize the effectiveness of human resource department. They think that hiring a person is the only responsibility of human resource department in any organization and it can be done by any other person of the organization. But on the other hand, many multinational and national organizations realize the importance of human resource department and they have a proper human resource department in their organization and they are achieving the results positively. Organizations are now thinking and many organizations start building a proper human resource department so that they meet the challenges of the market. So in near future, we will see that almost every organization must have a proper human resource department and human resource managers are performing their duties effectively.
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A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment . Political, economic, social and technological forces form the human resource management policies and activities. Local economy in terms of output and demand of labor is affected by the global economy influences.
Political factor is more complex in our scenario because Pakistan is facing political instability and its relation to the other factors which are related to the human resource management. As Pakistan is in the category of developing countries and political environment is constantly changing, mainly in the area of regulatory requirements. Employment legislation, human rights, pay equity, occupational health and safety, industrial relations legislation and pension all impose on most human resource management activities, including selection, training and rewards. Also, government can get involved in the economy to influence economic activity and thus change labor market trends. In the meanwhile, government can influence on the work week and mandatory employee benefits which is directly related to the human resource management .
A human resource management practices are strongly influenced by the current economic climate of the country. Skill level of workforce and labor cost are main factors of human resource management which are affected by the economical factor of a country. As Pakistan is a developing country and don't have a strong economic conditions which also impact on the organizations and they also don't have very much resources and on the other side those organizations who have resources only invest a certain level of amount which the organizations think they get back with profit. Due to weak economic conditions, organizations lack in competent human resource because people don't have much resources to get high profile employees. Due to economic condition, small businesses do not build a proper human resource department. They think that this will be wastage of money but do not give importance to it.
Social factor also affect the human resource management practices of any country. Demographics, class structure, education, culture and entrepreneurial spirit are some of the parts of social factor which directly affect the human resource management of any country. In Pakistan, this factor plays a very important role but unfortunately plays a negative role to some extent. Some parts of this factor also play a positive role like education and entrepreneurial spirit are the most important ones. On the other hand, some organizations and government sector organizations are ruled by the class structure and demographics politics.
Technological factor plays a very important and also positive role in the human resource management. Those organizations that have a proper human resource department are now using latest technology and due to this employees confidence is built on the organization and they work more effectively because they know they get what they deliver. Most of the human resource departments are using customized software's because of which their efficiency and effectiveness increased and they are delivering their best to the organization. These software's help the human resource department in the time of recruitment and performance appraisals etc.
Areas of Human Resource Management
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There are different areas of human resource management and here I select two areas of human resource management which I think are the most important areas of human resource management. The selected areas of human resource management are "recruitment" and "selection". These both are the important areas of human resource management because if you don't select a right candidate for right position than you do not get the required results from that candidate. I will further high light the importance of these two areas by using an example of a company. The company which I select for this evaluation is "wi-tribe Pakistan limited". I will discuss how the internal and external factors of wi-tribe affect the recruitment and selection process.
Recruitment and Selection:
RecruitmentÂ refers to the process of attracting, screening, and selecting qualified people for aÂ job .Â Different organizations outsource some of the recruitment process but there are organizations which perform the recruitment process itself. wi-tribe has its own full-fledged human resource management department which performs the activities related to human resource department. But there are few activities which wi-tribe outsource to different consulting organizations. wi-tribe outsource these activities to HRS global.
Internal and External Factors
The external factors  of an organization include;
Social, cultural, demographics and environmental forces
Political, legal and governmental forces
The internal factors of an organization include;
If the economic conditions of wi-tribe is not so good than they have to think about the cost incurred while conducting the recruitment and selection process. So because of this the organization tries that source of recruitment which will bear a lower cost of recruitment for each candidate and this will affect the selection of the candidate and there are chances that the wi-tribe will not select the right candidate and this will affect its operations and performance.
Social, Cultural, demographic and Environmental Forces:
These forces also have a strong effect on recruitment and selection process. If wi-tribe has a recruitment and selection process which is opposite to the social and cultural trends than this will also affect the recruitment and selection of the right candidate. Social, cultural, demographics and environmental forces affect the organization and it is the responsibility of the management to set the policies of the organization in a way that they are not affected by these factors. Management has to handle these forces otherwise they are hurdles in the way of recruiting and selecting the right candidate for the right position.
Political, Legal and Governmental Forces:
A number of government regulations have direct impact on recruitment and selection process. Trade unions also play a vital role in recruitment and selection. But these unions and regulations sometimes badly affect the organization and play a negative role. In wi-tribe there are no unions but they are affected by the regulations imposed by the government and also the Pakistan telecom authority. Political pressure is also used for any post which also affects the image of the organization among its employees and outsiders even the employee has the capabilities for a certain post.
Technology is also a factor which effects on the organization but in the case of wi-tibe it has more important role because wi-tribe is working in internet providing industry and providing wireless internet connections to its customers. wi-tribe has to stay up to date in his technology so that he can compete his competitors in technology. The more the latest technology the wi-tribe uses the more the positive impact effects on its customers wi-tribe impose. Now a day's wi-tribe is using the latest technology available and importing that technology from china. For the handling of that technology wi-tribe recruits and selects the most capable candidates so that they handle that technology with care and customers get the best services.
Employees are the back bone of any organization. Those organizations that are successful in the market are only because of their competitive employees. wi-tribe also have competitive employees which are capable of achieving their goals and because of these employees wi-tribe become the number 1 internet providing company in Pakistan within few years. This shows how effective the human resource department wi-tribe have because these employees are selected by the human resource department.
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Suppliers are also the important factor which affect the organization and play important role in the success of the organization. Those organizations who have effective and best suppliers are leaders in the markets and leading the market because the facility which you are offering to the market is a quality product or not based on your suppliers because if your supplier supply you the best quality products than you can deliver the best product. With garbage event his top leaders cannot produce the master piece.
Distributors are also the important factor and they are your front line army men. If you produce the best quality product and because of your distributors negligence your product will be infected than you are unable to lead the market and get required result. Some products are sensitive and need some extra care.
Every organization is looking for perfection in his every department. Here are some recommendations related to human resource management department of wi-tribe so that they can achieve their targets easily.
They give full rights to their human resource department and also gave them the freedom of recruiting and selecting the employee which they think is the most suitable for the given position.
Human resource department also include at least a single person from every department during the recruitment process of that department so that they can select the right candidate.