HR Practices in Pakistan and UK

The importance of recruitment and selection practices also known as Human Resource Management (HRM) could not be taken lightly. All national and multinational organisations rely on its most important resource – the people working in it – to carry out its goals and visions. Organisations do not work without the people. The Human Resource therefore takes care of a very essential component of the organisation. Thus, it deserves to be given due consideration and importance.

The proposed research will be focused upon to investigate the comparison of HR practices in Pakistan and UK multinational organisations. In the recent past so many research findings have been produced about the implementation of HR practices in Pakistan but it is evident that HR practices are not fully implemented and what are the main causes and factors due to which these practices are not implemented. On the other hand the HR practices in developed countries like United Kingdom play important in the success of the multinational organisations. Thus along with comparison this study will also reveal the effect of HRM practices in developed countries like United Kingdom and under developed countries like Pakistan.

Chapter 1

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Introduction

1.1 Introduction:

This chapter summarizes a brief overview of the entire dissertation. In this context, this chapter presents a brief introduction of the identified objectives. Background section of this chapter details research conducted to conclude main area of research. Some others topics include literature review, methodology, findings and results. Rest of this chapter has been organized as follows.

1. In section 1, we present aims and objectives of our research study.
2. Section 2 presents background study and research challenges are covered in section
3. At last in section 4 we present organization of this dissertation.

International projects that are increasing their actions universally are uncovered to increase knowledge in the variety of ways according to their situation. They are familiar with choosing problem among an internationally consistent strategy & a nearby adaptive strategy in their global individual source strategies.

Asia is the best rising district on the earth (Economist 2003, 2005; Fortune 2004) plus is motionless under-researched evaluated to Europe as well as the United States. The financial systems of the nations underneath learning are frequently grouped jointly as being underpinned by “Asian principles” although restricted traditions, organizations, as well as work powers vary in every of the chosen states. Known the local variation in financial expansion, the assortment of state permits examination of move together to higher financial systems such as Singapore as well as less-developed financial systems such as Thailand plus Indonesia.

The instant region of attention of this learning is the relocate of Human Resource strategies and their performance in United Kingdom headquarters (HQ) and supplementary in Pakistan. To know about how they use their HR practices and HR department to motivate their employees so that their performance should be at their best just like the HQ employees who has been working in a developed country. To know about the contrast of these employees the researchers is working on these variables, Motivation, Training and hiring of the employees.

After studying Japanese organizations western writers and parishioners have found that workforce management (utilization) is one of the main reasons of their success. This has a great influence on the writers, parishioners and the researchers to consider proper use of workforce in western organizations. Later on this style was termed as ‘Human Resource Management’ or HRM. At present, many organizations has functional personnel department known as Human Resource (HR) with the basic aim of managing their employees in an efficient manner.

1.2 Realistic Background:

At the same time as those kinds of keys are essential as well as sufficient to accomplish several of the managerial Human Resource jobs, the excellence of recompense, expansion plus guidance procedure – to name immediately a little – are not optimized with the similar severity in each state as those relating to the manufactured goods plus services that the own MNEs proffer. This require for the Human Resource purpose to competition the excellence of the manufactured goods as well as service commerce has lead to a rising attention of the MNEs’ headquarters in global Human Resource.

People working individually or collectively for the organisation are the essential and most valued elements of human resource management. HRM is considered as a strategic and detailed approach for the management of the organisation. ‘Personnel’ management term was used before the concept of HRM. According to Grant and Oswick (1996) of practitioners views on HRM said “There is and always was a gradual evolution of personnel management. I see HRM as just the latest stage of this evolution.” In Pakistan the HRM process is in developing or infancy stage. In Pakistan and other under developed countries the HRM practices are not fully implemented.

According to Beer et al, Human Resource Management affects the relationship between organisations and employees with the decision making. According to Pettigrew and Whip (1991) HRM is a total set of knowledge, skills and attitude that a firm need to compete. It includes matters like hiring, firing and training and actions concerning people such as employee relations, compensations and development. Such actions and matters can be brought up together through the creation of human resource management philosophy. HRM is the reflection of policies and objectives set by the management. These policies and objectives closely related and interlinked to each other. To obtain the objective of the organisation HRM function of planning pertains to arriving at an efficient process. It helps the company to achieve its goals. Organisation gathers and coordinates the resources needed to implement the plan. Human resource management organize the company structure form the relationships and allocate the resources to attain the objectives. Directing refers to the human resource management function that leads and supervises employees to attain the company objectives. Finally, controlling is confirming if the plan is carried out in actual situation.

1.3 Research Aim and Objectives:

1.3.1 Research Aim:

According to previous studies and researches the researchers have done allot of hard work on the specific field of HRM but this research only comprise the developed countries where human resource management plays an important role in the development of multinational organisations. However less consideration has been given and not too much research has been done with context to under developed countries like Pakistan.

Mostly the comparison revealed from past journals, books and magazines has shown that either one country has been thoroughly researched or two developed or under developed countries are compared. But this research tends to draw attentions towards the adaption of human resource management techniques and their behaviour in multinational organisations of both developed country like United Kingdom where HR practices are fully implemented and under developed country like Pakistan where HRM techniques are not used on same footings as of developed country and their results.

1.3.2 Research Objectives:

1. To investigate about the status and nature of HR practices with respect to both countries.
2. To conduct studies pertaining to human resources of both countries.
3. To understand the influence of cultural, social, economic, political and business environment on HR practices with respect to Pakistan and UK.
4. To suggest improvements to current HR standards imposed in Pakistan and UK.
5. To suggest suitable model of HR.
6. To give recommendation for successful implementation of HRM model.

1.4 Organisation of Work:

Introduction

All possible steps will be taken in order to make easy for readers about the finding of research. This dissertation is structured into SEVEN categories which are:

1. Literature Review
2. Research Methodology
3. Findinds
4. Discussion
5. Conclusion&Recomendations
6. Reflection Report

The layout of chapters for this report is as follows:

1.4.1 Literature Review

Literature review is one of the important sections of our work. We understand that literature review provides a based to understand the importance of HR activities in GISO. The term HR activities here imply role and practices of HRM, SHRM and its implementation in GISO. This chapter also focuses on the strategy and elaborates the link between strategy and HRM in the selected GISO.

1.4.2 Research Methodology

The main aim of this chapter is to discuss different methods and techniques for investigation in selected area. We will discuss research philosophy principle (positivism, realism and interpretive), qualitative analysis, secondary and primary data and also different types of interviews. In this chapter conclusions are made to identify various approaches and techniques needed to conduct our research study.

1.4.3Findings and Results

Research findings and derived results are presented in this chapter. These results are drawn from the interview and data collection from the managers/owners of the selected GISO’s.

1.4.4 Conclusion

This chapter presents research finding and derived results of our research study. In this chapter focus is also given on the aims and objectives of our research especially in the context of HR activities in the selected GISO’s. One important aspects of this chapter is the listed factors and reasons that are derived. We believe these factors and reasons can persuade business managers and owners to integrate HR and business strategies in selected GISO’s. Moreover, they can also be helpful in promoting the whole idea among the GISO’s.

1.4.5 Reflection

This chapter presents our own reflection in terms of learning process based on research findings and conclusions of carried out research study.

1.6.6 References

We have studied different books, academic papers and articles to build the foundation of our project. In references section we have listed all of literature we have studies in our research study.

Chapter 2

Literature Review

2.1 Preface:

The preceding section initiated and summarized this learning. This section presents the literature review of this study, which is related to the shift of strategies as well as performance in global individual source organization.

Primarily, an integrative structure for learning global individual source matters is obtainable. Next the general idea of literature argues present thoughts in the close relative regulations (Perry 2003). These are initial, global individual source organization, next, nationwide, educational as well as lawful dissimilarities among United Kingdom as well as Pakistan, third, international projects & their collision on individual source matters, plus the instant regulation, shift of individual source strategies as well as perform from international projects headquarters to auxiliary.

2.2 Integrative structure of planned Global Individual Source Organization (GISO):

This part begins with the introduction of an integrative structure of planned global individual source organization. Its arrangements as well as inferences for this section are discussed. This structure is believed in determining an idea inside the field of Planned Global Individual Source Organization (PGISO) moreover it is extensively used as a structure for study plus educational coaching in the field of global Human resource. The frame is motionless suitable and present, in spite of the rising attention inside the field of Global Individual Source Organization (PGISO) more than the last 10 years (Evans 2003; Fisher & Haertel 2004; Rowley & Benson 2004; Schuler & Budhwar 2002). As Pawan and Bahadur says ‘The impact of HRM policies on organisational performance is fully mediated by

employee skills, attitudes, and behaviour. The paper concludes that although the motivation to perform HRM policy domain causes organisational performance, through employee attitudes, it may be supported that organisational performance positively moderates the effectiveness of this HRM policy domain, raising thus the question of reverse causality”(Anastasia, katou,Bahadur,2009).

The HRM is concerned with the effective and efficient use of the organizations’ human resources. Hence, the human resource management runs the operations and as part of the functions of the HR departments is to attract the potential employees and by attracting the best applicants it is important that the HR management already prepared the strategies to help the hired employees perform well. Through the use of job analysis, the employees that are hired were trained and the expected them to perform the appropriate function effectively (Zafar, 2005). As in the words of Paul Gooderham”HRM promotes firm performance and firms have sufficient managerial autonomy to select HRM practices independently”(Gooderham and Nordhaug 2009).

2.3 Hierarchy of Human Resource themes (what is GISO and how it works):

Schuler (1994; 2003) plus others (Briscoe 1996; Nankervis; Rowley & Benson 2003) observed a hierarchy in the difficulty of human resources (HR) themes. The base is individual source organization in the firm at the nationwide stage. Individual Source Organization (ISO) comprises the majority human resources management jobs, such as payroll, as well as the themes of employing, presentation organization, preparation, expansion, recompense as well as advantages, as fine as manual labour relationships (Dowling, Schuler & Welch 1994). Further difficulty is new when leaving single stage senior to Global Individual Source Organization (GISO), which comprises Individual Source Organization (ISO) as well as inserts the confronts of general, educational as well as lawful dissimilarities among the states of the firm’s actions (Adler 1986; Briscoe 1995; Dowling, Schuler & Welch 1994; Fisher & Hartwell 2003).

2.4 Global Individual Source Organization (GISO)

This part describes an impression of GISO within the literature by talking about numerous obtainable GISO replicas. Three directions of MNE strategies towards GISO are argued.

2.4.1 Definition of Global Individual Source Organization (GISO):

GISO descriptions are widespread; GISO matters merely discover features of Human Resource Management in MNEs (Briscoe 1995). For others ‘planned global individual source organization is no further than the request of GISO to the global or global commerce background’ (For this study a clear-cut explanation of Global Individual Source Organization (GISO) is used:

GISO comprise of a compilation of strategies as well as perform that an international project uses to run the limited as well as non-local staff; it has in nations other than their residence nations. (Acclimatized from: Dowling, Schuler & Welch 1994)

2.5 Obtainable Global Individual Source Organization (GISO) Replicas

Some theoretical replicas look for to explain plus forecast how MNEs may demeanor Global Individual Source Organization (GISO) on a theoretical stage from a worldwide, planned viewpoint (Evans 1989, Pucik & Barsoux 2002; Milliman, Von Glinow & Nathan 1991; Nankervis, Compton 1999; Schuler 1993; Taylor, Beechler & Napier 1996). What MNEs in fact perform as well as, further highly, how they accomplish it is not so fine filed. Afterward replicas identify additional interior also exterior issues to clarify MNEs’ options of Global Individual Source Organization (GISO) schemes.

2.6 Global Individual Source Organization (GISO) Courses & policies

An explorative GISO course is single in which the close relative firm’s Human Resource Management scheme is being moved to its dissimilar associates. This policy highlights incorporation crossways the entire associates. The unenthusiastic feature of such an explorative GISO policy is its rigidity. This might show the way to an ethnocentric course from Head Quarters (HQ) plus as a result, associates may be resisted to the compulsory perform (Adler 2001).

The next, an adaptive GISO course is single in which every associate expands its personal Human Resource Management scheme, dazzling the restricted surroundings. The unenthusiastic feature of such an adaptive GISO policy is it’s require of internationally suitable principles as well as perhaps a group of incompetence due to the manifold formations of comparable strategies as well as schemes (Roberts,. 2000).

The third, an integrative GISO course, together unites individuality of the close relative corporation’s Human Resource Management scheme with individuals of its global associates, as well as tries to obtain ‘the most excellent’ Human Resource Management strategies plus employ them all through the association. Shifting of Human Resource Management strategies as well as performance happens plus can go away in several ways, among associates or from single associate to Head Quarters (HQ) or from Head Quarters (HQ) to an associate (Taylor, Beechler & Napier 1996). If realized fine, the integrative strategy is obviously the attractive win-win answer. The likely unenthusiastic feature is that the last GISO strategies of an MNE might symbolize the lowest ordinary denominator quite than surroundings global principles (Kostova 1999).

Containing recognized the dissimilar alternatives of GISO in words of an explorative, adaptive as well as integrative strategy; the query is how to make a decision which alternative to decide.

2.7 Nationwide, Educational as well as lawful dissimilarities among United Kingdom & Pakistan:

This part primarily contrasts the states United Kingdom plus Pakistan on a macroeconomic stage plus after that continues to talk about a structure for relative learning on Human Resource Management matters. Moreover, civilization is described as well as a contrast of the educational dissimilarities of the nations founded on four writers’ replicas, is offered.

Chart 2.7.1: Essential details concerning United Kingdom & Pakistan

Contrast United Kingdom / Pakistan

1. Populace(millions) 83.518.7
2. GDP (billion US$) 2259451.2
3. GDP for each head(US$) 35,1002,400
4. Labour force(millions) 31.45%55.77
5. Inflation rate 3.3 %13.4%
6. Joblessness 7.9 %15%
7. Faith 71.6% Christian 95 %Muslims

2.7.2 Relative Structure Sensible:

Relative learning on state stages countenances the difficulty of opposing styles plus information (Rowley & Benson 2002). Nonetheless an effort is completed underneath to present a precis of the nations beneath learning, relating the relative structure of Velma, Kocher plus Lansbury (1996) in chart 2.8.2.

Chart 2.7.2: Structure Functional for relative learning of United Kingdom & Pakistan

United Kingdom / Pakistan

Employment AssociationWide exercise of skill to amplify suppleness plus output of labour force.Mainly prejudiced by attendance of American MNEs’ local Head Quarters.

Ability ConfigurationFine skilled labour force with stress on occupational preparation plus sensible learning.Management drives elevated stages of teaching.Extremely incomplete attempt from the confidential division.

Recompense schemesAlthough an elevated earnings state, genuine incomes have been in refuse for years. Comparatively consistently dispersed disburse levels between businesses & occupations.Earnings have been continually increasing in actual words with elevated manifolds of compensate levels as the standard. Pakistan is not a contemptible work site any longer.

Service SafetyElevated servicesafety as well as labour force faithfulness with lawful defence of the labour force in recessions that creates saversCautious to get bigger in improvements.Extremely livelywork marketplacewithout compulsion on company to offerEnduring service or work safety.

Business Supremacy: Communal negotiating & well-built locations of the combinations that are as well symbolized on the panels of managers (co- willpower). Communally awfully steady.Corporatist scheme where the country forces work in a position secondary to administration financial rule. Generally steady.

2.8 Employment Association (United Kingdom & Asia):

United Kingdom utilizes skill to enlarge suppleness plus output of the labor force, Pakistan is powerfully prejudiced by American MNEs containing their Asia Head Quarters in Pakistan. Thailand is prejudiced in its job association by Buddhism as well as the physically powerful attendance of the kingdom & Indonesia, being quite rigid, utilizes its plentiful labor force with not a lot attempt to amplify output. (Briscoe 1995; Kamoche 2000; Lawler & Siengthai 1998; Verma, Kochan & Lansbury 1995).

2.9 Ability Configuration:

Pakistan have a profusion of inexpert work, with lacks in guidance as well as accomplished work, at the same time in Pakistan the administration vigorously forces for elevated stages of teaching as well as guidance. In United Kingdom the importance is on sensible learning, intensely entrenched in the scheme throughout professional guidance (Briscoe 1995; Kamoche 2000).

2.10 Recompense schemes:

United Kingdom is elevated earnings kingdom with Pakistan being a contemptible work state. Whereas incomes plus salaries are dispersed comparatively consistently in United Kingdom, creating it extremely luxurious for low accomplished work, where as Pakistan is further used to elevate manifolds of disburse levels (Herkenhoff 2000; Kamoche 2000).

2.11 Service Safety:

The additional Asian nations have lively work marketplaces as well as small employee faithfulness with the United States being the responsibility replica for Pakistan. The United Kingdom work marketplaces is very much controlled plus defended, therefore not self-motivated, with elevated employee devotion. United Kingdom defends their labour force lawfully in opposition to suspends, resultant in extra cautious developments throughout financial improvements (Briscoe 1995; Lawler & Siengthai 1996).

2.12 Importance of Training in an organisation:

One of the important element of HRM beside selection and hiring of employees is the training of employees. It is an essential tool for an organisation and plays an important role in enhancing the effectiveness and efficiency of the employees. It is beneficial for both the employee and the employer because when an organisation provides effective training to its employees they will in return be able to put that training in practice. Training is also important for employees to help them to cope themselves with the rapid or slow changes within the organisation. That is the reason that organisations put high regard on giving training to its employees Wright et al (1992).

With the help of effectively conducted training programmes a large number of potential benefits can be obtained by individuals as well as organisations. With respect to their position trainees may gain greater intrinsic or extrinsic job satisfaction. Intrinsic satisfaction comes from performing a task well and extrinsic job satisfaction may be derived from extra earnings gained by performing well in an organisation which can also become the cause of enhancement of career and promotion prospects both inside and outside the organisation. On the other hand organisations benefits from increase in employee work performance and productivity Welch (1994).

2.13 Human Resource Practices in UK and Pakistan:

To evaluate the present structure of HRM with respect to both countries, the author would also analyse the key factors affecting on HRM, which include, culture, political, economic social context, Institutions, education system and the present structure of HR in Pakistan, but the focal point of this study would be training practices of multinational banks having branches both in UK and Pakistan. According to Peter F. Drucker “People are definitely the company’s greatest assets. It doesn’t make a difference whether the product is cars or cosmetics. A company is as good as the people keep it.”

2.13.1 HR Practices in Pakistan:

Pakistan was established on August 14, 1947. Today in 2011, sixty three years later, Pakistan is still experiencing growing pains. As a young nation Pakistan is facing a number of struggles to become a sustainable development country so that along with the national companies foreign companies should also do investment here. For this reason it is struggling hard to attain sustainable development particularly in the field of Human Resource management. From past 2 decades as the business started to grow up and foreign investment started to come in the country a large number of obstacles have been seen particularly in the field of improving and managing the human resource effectively. At this point Pakistan, the human resource management situation in Pakistan is far from being excellent. In some private sectors, HR department is present but it is not fully functional. The Army in Pakistan is a bit organized but still experiences some lapses in other areas. The multinational companies fair better in the human resource department because they have management tools perfectly in place.

The human resource techniques used in Pakistan in past need to be re-examined because they only managed to create a group of unskilled qualified man power and unproductive organizations. The issues or problems surrounding the human resource management all falls under the functions of HRM discipline. The issues revolve around several aspects such as:

Job Analysis and Design:

The function of human resource management is to monitor constantly the everyday performance of the organisation as everyday has new performance implication Guest, D (2001). In Pakistan most of the times the employees found themselves in an overlapping situation. One of the main reasons for this is that the job description and specifications are not properly outlined. This results in a situation where employees found themselves in an overlapping situation and take pressure and burden of work which makes them less productive and stops them to achieve their targets of job.

Work Flow Process:

In Pakistan the work flow process is not given much attention and is not implemented very well. This results in finishing a task longer time than in routine. In order to complete a task those processes are also done which are not necessary for the accomplishment of the task. Consequently, people end up doing more work that does not lead to the achievement of their goals. It also makes the management process seemed more complicated and time-consuming Singh K (2004).

Recruitment and Selection:

Nepotism and mal are the main hurdles which are responsible to curtail the process of hiring and selection in many government and private organisations. However with the introduction of new procedures the recruitment and selection process is getting better. In the private sector things look rosier since hiring is based on the qualifications of the applicant. Even if he is referred by the incumbent still the person they will hire needs to come up with certain performance standards to be able to remain in the organization.

Work Environment:

The office environment in Pakistan does not meet the standard of health and safety and sanitation standards. This is particularly noticeable in the government sector. The office does not provide a hospitable working environment that encourages productivity. The rooms usually do not have proper seating arrangements and cleanliness is ignored. However with the establishment of multinational companies and banks the environment on whole is getting better as they follow strict international standards of health and safety.Hierarchy:

Government sector hierarchy is quite complicated in Pakistan. Expressing the point of view is quite difficult which can cost the employee his job. The officers in higher positions demand following of protocols complete with paraphernalia which costs money for the government. In the private sector, hierarchy is sometimes ignored where as in multinational organisations it is on very small scale.

Working Hours:

Working in the government requires that the employee report for work at 8am in the morning everyday even if they don’t do anything at that time. The employees usually come in at 8 then hop on a government vehicle to visit various offices for networking, socialize. At lunchtime they go home, rest then come back at 5pm in the evening and work until 9pm. This working technique allows worker to be committed to their jobs and learn hard work and perseverance.

Performance Appraisal:

The ACR in the government can either make or break careers. It is not unusual to see bending or distorting of appraisal to make the report more favourable to the employee. One report could spell a huge difference in a person’s career such as job promotion. Performance effectiveness often means not showing excellent performance but closer ties with the boss. The person in the higher position often does not bother to socialize with subordinates because they do not give feedback to the boss.

Systems and SOPs:

Government has some systems in place although some need improvement. The local NGO (non government organisation) sector does not have any system at all as they do whatever they want. The private sector such as multi-national companies is in a much better shape since they have established system for company activities.

Reward System:

Money is often seen as the only motivator even if employees are not compensated well. A vivid example of this is a police officer and an ordinary police man, the former often receives a number of privileges at work the latter however does not. The reward system could not possibly motivate people or be a real ‘reward system’ since excellent performances is not recognized by being promoted in the job or incurring a higher salary. Just as bad performance does not incur disciplinary measures for the employee. The reward system is virtually non-existent.

Career Development:

Employees often could not aspire for growth because of the presence of political red tape that poses as obstacles to be able to attain job promotions or, at least, a higher salary.

Training and Development:

Several national and international trainings are financed by the government for employees. These trainings however are dimmed by intrigues as the motive behind the selection of employees to be trained is often under suspicion Cooke, F (2002). The relevance of training and its applicability to the job is under scrutiny since it was found out that most Pakistani officials avail of international trainings to be able to experience travelling and have shopping trips.

Aside from these pressing issues facing the sustainable advancement of human resource in Pakistan, more issues hound them such as:

• Cost benefit analysis is not used in management decisions to determine the feasibility of a certain project or undertaking.
• The education policies are not applicable to the industrial requirements.
• Education is more focus on the theoretical aspect rather than the practical aspect of the profession.
• Most professional malpractices are brought about by political pressures.
• People are not chosen for the right jobs. Consequently, jobs become a daily routine.
• People have ulterior motives that cater to their own interest even if it does not contribute to the advancement of the organization.
• Poor leadership.
• Diversity and innovation is not practiced in most companies whether government-owned or private.
• Lack of opportunities for growth.
• Low motivation.
• Passive behaviours.
• Management by Objectives (MBO) is not in place.
• Multitasking is not practiced among government employees.
• Pay is not based on performance level of an employee.
• Commitment level is very low.
• There is a noticeable lack of specialists in some subjects.
• Deficient research in the area.
• Improper Communication within the organization.
• Inflexibility.
• Wrong perceptions.
• Many organizations don’t have a vision on where the company is heading.
• Short term vision

Government spent money to improve human resource but due to lack of planning, the expected positive result was not realized. Pakistan struggles to secure a place in the League of Nations because of poor human resource management in the past. Working is not enough if not given proper support and credit. These, however, are manageable issues once Pakistan resolves them.

2.13.2 HR Practices in UK:

Human resource practice in UK can be considered as a perfect example of successful HRM techniques in developed countries. Comparing with Pakistan HRM practiced in UK can be said as the other side of the coin.

Comparatively human resource practices in United Kingdom are more in place than in Pakistan. With hundreds of multinational companies and thousands of national companies all over United Kingdom a large workforce is working having a multi cultural background. Employees are offered an attractive salary and are also given benefits. In order to maintain the standard facilities, training and work conditions are also better as standards are needed to be adhered to. Government and private organisations work hand in hand to ensure that laws, policies and systems are practiced and carried out. As a testament to this, a number of skilled labourers also migrated to the United Kingdom from countries such as India, Philippines and Pakistan due to the more favourable working conditions in the UK Brewster et al (2004).

This may come as a huge surprise then that in the latest survey of 2000 UK employees commissioned by the Chartered Institute of Personnel and Development (CIPD) revealed that relationships between employers and employees in a number of workplaces are described as having poor communication, trust is at low levels which leads to underperformance, low productivity and high staff turnover.

In a book called Working Life: Employee Attitudes and Engagement 2006 written by Catherine Truss, Emma Soane and Christine Edwards from the School of Human Resource Management at the Kingston Business School, Kingston University and Karen Wisdom, Andrew Croll and Jamie Burnett from Ipsos MORI. The authors believe that the main problem in HR practices in UK revolves around communication and trust. In so many ways, it is similar to a marriage under stress:

Mike Emmott, CIPD employee relations adviser, said: “Lack of communication means many employees feel unsupported and don’t feel their hard work is recognized. As a result the sparkle has gone out of the relationship, damaging productivity levels in many UK businesses.”

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