Problems and challenges in human resource management: A case of large organizations in Pakistan

Abstract

Human Resource Management (HRM) plays a critical role in the success of organizations, particularly in large enterprises where workforce management is complex and challenging. In Pakistan, large organizations face numerous HRM challenges, including talent acquisition, employee retention, workplace diversity, performance management, and compliance with labor laws. This research explores the key problems affecting HRM in large organizations in Pakistan, analyzing the impact of cultural, economic, and technological factors on HR functions. There is growing evidence that human resources are critical to the performance of organizations and may offer the best return on investment for long-term competitive advantage. Therefore, the authors of this study argue that financial sector companies should strategically apply human resource management (HRM) and use new HRM approaches to attract, retain, develop, and motivate employees. Important human resource management research focuses on attracting, motivating, and retaining knowledge workers. The study utilizes a mixed-methods approach, combining qualitative insights from HR professionals with quantitative data from industry surveys. Findings reveal that ineffective HR strategies, political interference, skill shortages, and employee dissatisfaction are major hurdles. Based on these insights, the study proposes strategic policy recommendations to enhance HRM effectiveness in large organizations in Pakistan.