The increasing globalization and the forces driving it are posing serious challenges to organizations throughout the world, particularly to the third world countries.

Global changes and technological advancements have affected many processes – new ways to innovate, new forms of work organization, changes in the nature of work and new occupational categories. With these changes, human resources development takes a significant position in modern organizations. In Pakistan we are still struggling to generate a vision for HR. It is critical for us as a nation to address this if we are to progress and face challenges of global nature. According to the World Bank, there are three main components of economic growth, they are as follows:

We must consider the designing and implementation of effective HR policies as an essential investment on HR community and not as an expenditure. This investment is far more important than building roads, bridges or power-houses. We must first build our people. It is imperative that they (policymakers) direct their attention and energies towards HR development and improvements in order to achieve sustained economic growth and social development in the 21st century. Human resources are of great importance for a poor country like Pakistan.

The increasing globalization and the forces driving it are posing serious challenges to organizations throughout the world, particularly to the third world countries. One of the very important aspects of human resources development is the support of business houses at national and international levels. Only those organizations, which understand the new environment and
growing complex competition and have the ability to provide appropriate responses to the challenges will survive and grow. The following is the level of per-capital investment in human capital development in various developing countries of the world:

Country Investment in HRD
Pakistan     US $. 10
India        US $. 31
Indonesia    US $. 54
Malaysia     US $. 150
South Korea  US $. 160

The most valuable and the most perishable resource in any organization are in fact, the human resources.

Unfortunately, there are not many organizations in Pakistan that use this resource optimally. Most of them abuse, misallocate and misdirect this resource to an incredible degree. All organizations, whether national, multinational or international, have to deal with this resource, which is limited in the environments they operate.