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mubarak khadar This dissertation is my original work and has not been presented for a Degree or any other academic award in any University or Institution of Learning other than New Generation University College School of Post Graduate Studies for academic credit".
Typology: Thesis
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This thesis has been submitted in fulfilment of the requirements for a postgraduate degree (e.g. PhD, MPhil, DClinPsychol) at the University of Edinburgh. Please note the following terms and conditions of use:
This work is protected by copyright and other intellectual property rights, which are retained by the thesis author, unless otherwise stated. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This thesis cannot be reproduced or quoted extensively from without first obtaining permission in writing from the author. The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the author. When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given.
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DECLARATION
In accordance with the University of Edinburgh regulations for Research Degrees the author declares that:
(a) This thesis has been composed by the author
(b) It is the result of the author’s own original research
(c) It has not previously been submitted for other degree or professional qualification
The copyright of this thesis belongs to the author.
Signed.......................................................................
31 st^ May, 2016 Dated........................................................................
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ACKNOWLEDGEMENTS
Praises be to the Divine Force who looks after everyone and helps those in times of difficulty and sadness. Without His blessings and guidance I would never have achieved this milestone.
Keeping in tune with tradition and custom, and primarily of my own accord, I would like
to thank my Supervisors Dr Xiaobai Shen and Dr Sara Chaudhry, who guided me with their wise words at every step of my PhD journey.
Words cannot express how grateful I am to my Parent, my Baba Sain, my wife, Shamrose, and my three lovely daughters, Aatiqa, Aamna, and Aaliyah, for their extended support, love, and patience. My special thanks to my brother, Nazeer Ahmed, who always encouraged me and showed faith in my abilities and skills.
I would like to thank my Alma Mater, the Sukkur Institute of Business Administration (Sukkur IBA) and its Director, Prof. Nisar Ahmed Siddiqui for funding my PhD research. A graceful acknowledgement is also forwarded to all my Edinburgh business school colleagues, friends in Edinburgh, and well-wishers who supported me during my PhD journey as well as during my pleasant stay in Edinburgh.
I dedicate this thesis to my late grandmother, Amma JiJi, whose prayers and teachings will always guide me.
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ABSTRACT
This thesis explores human resource management (HRM) adoption by investigating the influence of multiple HRM actors’ social position, capital resource(s) exchange mechanism, dispositions, social classes, habitus, social expectation, and national and global environmental factors.
The objectives of this thesis were achieved through systematically conducting three different studies for the thesis. The first study was carried out to gain insight into the influence of social position on HRM academics’ adoption. The major contribution of this study was a theorising model on HRM academics’ adoption. It shows which capital resource is very sought after and how it plays a role in developing HRM academics’ dispositions, which in turn provides them with the drive and motivation to adopt western HRM ideas and knowledge. The second study was carried out to gain insight into the mechanism and formation of capital resource(s) exchange that influences HRM practitioners to adopt western HRM ideas, knowledge, and practices. The main contribution of this study comprised empirical insights into the importance and role of social class (élite and emerging class); habitus and socialisation (primary and secondary socialisation) as developers and controllers of the mechanism of capital resource(s) exchange; and formation of social position. The third study investigated a gap between accepted (adopted) HRM ideas and knowledge, and actual HRM practices. The major contribution of this study was its theorising on the factors that influence this gap. It explored the influences of conflicting factors such as actors’ professional and occupational orientation and position, social position, and social expectation, which develop the gap.
This thesis adopted a qualitative abductive research approach. It conducted qualitative in- depth interviews with 19 HRM academics, 15 MBA-Alumni HRM practitioners, and 10 non-MBA-Alumni HRM practitioners. Qualitative observation in two business schools and five business organisations in multiple industries was carried out to enrich the data collection.
This thesis contributes to the existing body of knowledge by providing insights into individual actors’ level HRM adoption, which is an underexplored area in Pakistan and similar developing countries. By employing theoretical and analytical tools based on Bourdieu’s theory of practices and social position, Rogers’s and Tarde’s theorising of adoption, and findings of empirical studies of macro institutions, cultural sensitive views, and institutional factors’ framework in the diffusion of HRM, this thesis explored, examined, and theorised HRM adoption at different individual actors’ level in business organisations and business schools in Pakistan. In that respect, this thesis theoretically contributes to Bourdieu’s theory and its unique use in international HRM, organisation studies, and management research. This thesis empirically contributes to the understanding of management and think tanks in business schools, business organisations, educators, HRM practitioners, and relevant government and regulatory
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bodies who can benefit from the findings of this research by understanding the different factors and social structures affecting western HRM’s effectiveness and its applications. It also suggests to these stakeholders the factors that affect individuals’ and employees’ adoption of western HRM and western management ideas, knowledge, and practices; any change in strategies, policies, and procedures; and problems in their implementation.
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Contents DECLARATION ................................................................................................................................ i ACKNOWLEDGEMENTS ................................................................................................................. ii ABSTRACT ..................................................................................................................................... iii List of Tables.................................................................................................................................. x List of Figures ................................................................................................................................ x List of Abbreviations .................................................................................................................... xi Chapter One: Introduction ............................................................................................................ 1
Aleeba, HR Manager, Pakistan based Multinational firm in Food and beverage industry. 4.4.4.2 Acquisition of dominant form of capital resource through exchange mechanism
- 2.3.2 Phenomenology - 2.3.4 Research approach - 2.3.5 Abductive approach - 2.3.6 Research Design
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Rita : HRM practitioner, with an MBA orientation......................................................... 231 Leon, HRM practitioner, without MBA orientation ....................................................... 235 5.4.2.2 Second Order Cross case Analysis and Discussion. ................................................ 239 5.4.2.2.1 Social Position ..................................................................................................... 240 5.4.2.2.2 Social expectation ............................................................................................... 242 5.4.2.2.3 Gap between adopted and implemented HRM .................................................. 245 5.5 Conclusion ....................................................................................................................... 247 Chapter Six: Conclusion............................................................................................................. 251 6.1 Individual actors’ HRM adoption: formation and mechanism of social position ........... 254 6.2 The influence of HRM academics social position on HRM adoption. ............................. 261 6.3 A mechanism of capital resources exchange and social position formation: study of MBA-HRM graduated practitioners. ..................................................................................... 267 6.4 Knowing doing gap between adopted and implemented HRM in Pakistani organisations. ............................................................................................................................................... 273 6.5 Research contributions and implications of this thesis .................................................. 278 6.5.1 Methodological and theoretical contributions and implications............................. 278 6.5.2 Practical contribution and implication ..................................................................... 280 6.6 Limitations and future research ...................................................................................... 281 6.7 Personal Reflection on the thesis.................................................................................... 283 References................................................................................................................................... xii Appendices .............................................................................................................................. xxxiii Appendix-A .......................................................................................................................... xxxiii Appendix – B: Interview Transcripts ................................................................................... xxxvi Appendix- C: Guideline for interview questions ..................................................................... lix Guideline for interview questions with Academics ............................................................ lix Guideline for interview questions with Alumni and Non-Alumni Practitioners. ................ lxi
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List of Tables
List of Figures
Figure Number Title Page Number
Qualitative research process by abductive approach Flow diagram of the research process Representative categories of focal HRM academics’ used in mini cases. Data structure: the influence of social positon of HRM adoption. Influence of HRM academics social position on HRM adoption. Representative categories of focal MBA-Alumni HRM practitioners used in mini cases. Data structure: Capital resources exchange mechanism and formation of social position. Capital Resources Soft Exchange Hard Exchange Capital resources Exchange mechanism Data Structure: Doing-doing gap (Decoupling) The gap between adopted and actual HRM practices. Social position of HRM actors: formation and mechanisms HRM adoption and knowing-doing gap
58 83 108 111 - 112 138 163 166 - 167 186 188 189 190 222 246 256 259
Table Number Tittle Page Number
Research paradigms and worldviews. Philosophical position adopted for this thesis. Types of reasoning. Reasoning approaches to qualitative and quantitative research. Details of Participants and research sites Category-wise details of participants Time line of data collection (instrument-wise) Comparison of Glaser and Strauss versions of GT Comparison of Glaser and Strauss: coding procedure and format of theory. Illustrative Evidence: Frank Illustrative Evidence, Sabastian Illustrative Evidence: Nicola Illustrative Evidence: Ulmer Cross-case comparison: HRM academics Illustrative Evidences: Ruchie Illustrative evidences: Aleeba Illustrative Evidences: Aleesha Illustrative Evidence: Lexman Cross-case comparison: MBA-Alumni HRM practitioners Participants and sampled organisations Illustrative Evidence: Alex Illustrative evidences: Rita Illustrative evidence: Leon Cross case comparison: HRM academics and HRM practitioners
46 48 56 56 60 61 69 74 76 116 - 118 121 - 123 125 - 127 129 - 131 134 - 135 170 173 177 181 182 - 185 217 226 - 230 233 - 235 238 239
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List of Abbreviations
SAARC South Asian Association for Regional Corporation.
HRM Human Resource Management
HRD Human Resource Development
MNC Multinational Corporation
HEC Higher Education Commission of Pakistan
SECP Securities and Exchange Commission of Pakistan
MBA Master of Business Administration
BBA Bachelors in Business Administration
IBA Institute of Business Administration, Karachi, Pakistan
SIBA Sukkur Institute of Business Administration, Pakistan
NIPA National Institute of Public Administration
NIM National Institute of Management
PM Performance management
GT Grounded theory
CGT Constructionist grounded theory
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Chapter One: Introduction
This thesis explores the adoption of management ideas and knowledge in general and human resources management (HRM) in particular in Pakistan. Looking into HRM adoption will contribute to the understanding of why, how, and to what extent management ideas, knowledge, and practices, with their genesis in the west, have been accepted and taken up by different individual actors in the field in developing countries like Pakistan. It will also shed light on why, despite debate about the value and utility of western management ideas and knowledge to economies, organisations, and individuals in different cultures and societies, they have been taken up in developing countries. Addressing this phenomenon will provide underpinnings for scholars, practitioners; and senior management and think tanks in business schools, business organisations, educators, HRM practitioners, and relevant government and regulatory bodies including accreditation agencies and ranking media. It provides them in-depth understanding as to the motives and drives behind individuals’ HRM adoption, which in turn can enlighten us as to how effectively western management ideas and knowledge can be used for HRM development (as a field) in developing countries. There are several perspectives that could be used to examine the adoption and diffusion of HRM. However, having identified the gaps in the extant literature on international HRM, international business, management, and organisation studies, this thesis adopts a perspective of social position and micro-level institutions to look into micro-level actors’ adoption of HRM in different organisational and institutional settings, ranging from business school academics to HRM practitioners in business organisations. This thesis is structured as 3 inter-related studies on HRM adoption and social position. Study one looks into the influence of HRM academics’ social position on HRM adoption. Study two looks into the mechanism of capital resource exchange that shapes actors’ social position. Study three looks into HRM actors’ knowing-doing gap between adopted and actual HRM.
The individual actors whose adoption of HRM is examined are sampled from three main categories of HRM professionals in Pakistan: HRM academics, MBA-Alumni HRM practitioners, and Non-MBA-Alumni HRM practitioners. The HRM academics take up the role in teaching, research, and publication in the field, which provides them with social position and legitimacy. On the one hand, this is per se adoption and dissemination
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of western HRM; on the other hand, it gives HRM academic actors an arena within which to be critical in their professional roles, such as teaching and research. Despite the MBA-Alumni HRM practitioners who have been educated and trained by HRM academics, there is a gap in terms of what they are trained for and what they can implement in practice. Differences in the social positions of HRM academics and Alumni practitioners as well as non-Alumni practitioners, and the different demands from multinational corporations, local institutions, and real business needs, as well as global trends and pressures placed on actors, generate a complex mix of factors which create a gap between what is adopted and what is practically implemented. Hence, the aim of this thesis is to examine the influences of social position and other environmental factors as a context affecting individual actors’ HRM adoption in Pakistan.
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This phenomenon has led to scholarly consideration of why and how regions, organisations, and individuals adopt management ideas and knowledge which have their genesis in the west. It specifically leads us to look into the same phenomenon in developing countries, which have traditionally been more exposed to western management ideas and knowledge through various channels, such as multinational corporations, business education, consultancies, macro-institutional factors, acculturation and globalisation (Sahlin-Andersson and Engwall, 2002; Das, 2011; Meyer, 2001). Predominantly, it leads academics and practitioners to look into the factors and processes by which, despite criticism of and questions about the value and contribution of western management ideas, knowledge, and practices to different regions and societies (e.g, Mazza et al., 2005; Rovik, 2002; Cornuel, 2005; Mintzberg, 1996, 2004), this approach is widely diffused in business organisations across the globe, and is adopted by individuals. Past studies on diffusion and adoption of management knowledge and ideas have widely drawn on macro-institutional perspectives and, at organisational or group level, analysis. Hence, in this thesis I focus on micro-level individuals’ adoption of western management knowledge, ideas, and practices, by focusing on individuals’ social position, and by taking a case of human resource management (HRM) adoption in a developing country.
Past studies have extensively drawn on macro institutions and other environmental factors, stating that the influence of macro institutions, such as family, education, and political and economic structures (Tayeb, 1995), shape individuals’ early socialisation or conditioning process (Khilji, 2003). These institutions and their representatives impact on the future personality and social standing of individuals (Hofstede, 1991; Tayeb, 1995). Khliji (2003: 110) argues that “these macro institutions influence organisational structures in a systematic way, with the result of organisational practices and processes reflecting typical national patterns. Consequently, the success of HRM practices in one country cannot ensure their success in another culture”. Past studies (e.g., Newman and Nolen, 1996), employing the cultural-sensitive perspective, maintain that national culture influences the HRM of an organisation, as national patterns are reflected in adopted HRM. Likewise, I argue that, as individuals in organisations who adopt HRM are influenced by their social position and social structures, so the adopted HRM in organisations reflects the influence of individual HRM actors’ social position.
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An individual’s pre-dispositions and thought processes influence their reactions to different situations (Thompson and Luthans, 1990). Individuals in a social setting learn and act according to which behaviour, ideas, and opinion are rewarded and which are punished (O’Reilley and Caldwell, 1985; Social learning theory perspective). It shapes individuals’ values and belief systems, making their ideas and value systems a part of material existence in their everyday lives (O’Reilley and Caldwell, 1985). Hence, individual ideas, opinions, and knowledge cannot be separated from the material benefits and resources which could possess the potential to shape individuals’ classes, groups, and social standing and social position (Bourdieu, 1986, 1977; Bourdieu and Wacquant, 1992). However, less is known about how these pre-dispositions and thought processes, which form individuals’ social position and HRM adoption in Pakistan, are shaped.
Although the literature on international business, international HRM, and organisation studies addresses macro institutions as factors in the successful or unsuccessful adoption of cross-border knowledge, ideas and practices (Khilji, 1999, 2002, 2003; Kostova, 1999), the systematic way in which organisational structures are influenced has been less explored. This is especially true of the national and other macro-institutional patterns that are taken up at the individual actors’ level, either hindering them or enabling them to gain success from western HRM ideas, knowledge and practices. Although past researches have focused on the cultural-sensitive aspect, macro institutions, and national and international factors, the core mechanism through which agents are influenced by these factors, and how they create a sense of the institutions and the institutional factors, need to be explored further. In particular, the way the social set-up is formed and the mechanism through which actors interact, exchange views and make sense of HRM need to be examined. Hence, I propose a social-sensitive view, according to which the differences in actors’ social position result from their desire, possession, and maintenance of capital resources, which differ across various societies and groups of HRM actors. Consequently, this view produces different insights into how management knowledge, ideas, and practices in general, and HRM in particular, are taken up in Pakistan.
The studies within this thesis are unique in drawing on evidence from Pakistan of micro- level individual actors’ social position and adoption, which so far has not been studied. It is also unique in addressing the social-sensitive view rather than the cultural-sensitive view and the macro-level institutional factors, which have traditionally been addressed
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in past studies (e.g., in the Japanese and Chinese context: Holden, 2001; Lu and Bjorkman, 1996; Newman and Nollen, 1996; Snape et al., 1998; and in the context of developing countries such as India, Thailand, Mexico, and Eastern Europe: Lawler et al., 1995; McGaughey et al., 1997; Cyr and Schneider, 1996).
My thesis statement is that the adoption of HRM knowledge, ideas, and practices in Pakistan reflects the formation and influence of HRM actors’ social position, and general characteristics of the culture and society in which they operate. In this thesis, this phenomenon is examined through the study of different HRM actors in business schools and business organisations in Pakistan, in order to theorise around HRM actors’ social position and HRM adoption. Doing so will contribute to and enrich scholarly and general understanding of how and why HRM has been taken up in Pakistan, and what social mechanisms and structures give it a unique shape.
1.2 The Significance of this thesis
The major contributions and implications of this thesis which describe the significance of the studies within this thesis are summarised below: Based on the search and review of the extant literature, this thesis study is one of the few studies undertaken in SAARC region in general and Pakistan and similar developing countries in particular to explore and investigate the HRM adoption at individual actor level. And why HRM practitioners, Professionals, and employees accept, reject or resist the change in traditional personnel management, and implementation of the western HRM. Most international HRM, organisation studies, and management research in Pakistan have concerned organisational or group level and multinational corporations (MNCs). This thesis theorises the social and economic factors and structures that influence individuals’ adoption at the level of ideas, knowledge, and practices of the western HRM and measuring its effectiveness, value, and utility. The theorisations empirically integrate elements and ideas from Bourdieu’s theory of practices and culture field theory with focus on social position, social status, and structural construction of actors’ beleifs, norms, and understanding.
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Bourdieu’s theory of practice and culture field has been classified and recognised as grand theory (e.g., Reckwitz, 2003). The theories is “abstract and normative theories of human nature and conduct” (Skinner, 1985:01). These theories are generated in nature and can be applied to different circumstances and areas of research. They have an increasing use in organisation studies (e.g., Nahapiet and Ghoshal, 1998), Marketing (e.g., Holt, 1998), and Human resource management (Mayrhofer, Meyer, Steyrer, and Langer, 2007).
Employing Bourdieu’s theories of practice and culture field with specific focus on elements of social position, capital resources exchange mechanism, disposition, and habitus enabled me to unfold the dualities of structure vs agency, structuralism vs constructivism, determinism vs freedom, or influence of micro vs macro factors in Pakistani context of HRM actors. It facilitated an in-depth analysis of how structure act as a rule and determine and condition individual thoughts and behaviours.
Other theoretical lenses such as neo-institutionalism or institutional change theories (e.g., DiMaggio and Powell, 1983; Meyer and Rowan, 1991) suggest that pattern pattern of actions and organisation is shaped by institution rather than only by instrumental calculations. It assume that individuals and organisations tend to comply, at least in appearance, with institutional pressures. It gives limited picture of conception of agency at individual level. Therefore, it is needed to understand and explore further a conceptual link between agency and structure at individual level, specifically in Pakistani context. Hence, Bourdieu’s theory of practice and culture field with focus on social position, capital resources exchange mechanism, dispositions, and habitus is employed in this thesis.
This thesis is a significant attempt to unfold the levels 1 of the western HRM implementation in Pakistan. It provides theoretical and practical understanding to management and think tanks in business schools, business organisations, educators, HRM practitioners, and relevant government and regulatory bodies including accreditation agencies and ranking media on value and utility of the western HRM in particular, and western management ideas, knowledge, and practices in general. It also provides some insights into the reasons behind why employees, HRM practitioners, and
(^1) In business organisations and Business schools: HRM academic, MBA-Alumni HRM practitioners, Non- MBA-Alumni HRM practitioners.
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HRM professionals’ accept change in their professional role, practices, and structures. It, in turn, assist management of the organisations and relevant decision makers in implementing the required change in their organisation’s policies, procedures, and strategies.
The findings of this research make aforesaid stakeholders and decision makers aware of different factors and social structures affecting the western HRM’s effectiveness and its applications. It also suggests the factors that affect individuals and employees’ adoption of the western HRM^2 , and any change in strategies, policies, and procedures. Senior managers, HRM educators, and think tanks in different institutional setting need to comprehensively understand the influential factors 3 at social, economic as well as broader institutional level before making a decision on adoption and implementation of new practices and their applications. Moreover, Pakistan government^4 could consider these factors when issuing directives, and giving assistance to business schools and business organisations with regards to the development of HRM departments and faculties. First, the target of this thesis was to determine the drives and motives behind individual HRM actors’ adoption. Secondly, this thesis paid attention to social factors that provide them a drive, motive and perception about scope of the western HRM in Pakistan. Thirdly, it identified conflicting factors that influence different categories of HRM actors differently for the adoption and, the consequent gap in their adopted and actual HRM. Therefore, this thesis study is beneficial to the aforesaid parties, and addition to existing literature and body of knowledge.
Furthermore, the necessity of this thesis study come from the non-transferability of the findings from the research in developed countries to Pakistan and similar countries. This research is also expected to be useful to the managers planning and implementing new HRM policies, procedures, and practices, where extensive attention is given to their applications and implementation with focus on the factors required for supporting the
(^2) Set of HRM best practices (^3) Influential factors such as social class, financial, social, educational position, past background, lived experiences, key habits and dispositions etc. Higher education commission of Pakistan; Securities and Exchange Commission of Pakistan; ministry of finance and commerce; ministry of education.
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decision making process, rather than just administratively introducing and implementing them^5.
1.3 Research setting
The empirical setting for this thesis consists of human resource management (HRM) actors in Pakistan. It comprises HRM academics in business schools and MBA programs, MBA-Alumni HRM practitioners, and non-MBA-Alumni HRM practitioners in business organisations. 44 participants from two business schools and 5 business organisations in Pakistan were sampled by purposive sampling (Miles and Huberman, 1994). Data collection instruments consisting of in-depth interviews from 44 participants, qualitative observations (both participatory and non-participatory) at five sites, and archival data sources were used to triangulate the data.
1.3.1 Pakistan: Country profile and chronology of the events that led to the entry of western management ideas, knowledge, and practices in the country
Pakistan is a Commonwealth member country, part of the past British colonial system, and one of the eight member countries of South Asian Association for Regional Corporation (SAARC). Its historical affiliation with western countries, i.e., the British legacy and American influence in political, social, economic, and cultural institutionalisation, makes it receptive to western business management structures in business organisations and academia. Pakistan was selected as the research site country because of its importance in the region and among developing economies.
Pakistan is in the Asian continent, which is home to 60% of the world’s population. It has a strategic geographical location that gives it the status of a business, economic, and socio-cultural hub. It has a gateway to and borders with China, Iran, India, and central Asian countries. It is the world’s sixth most populous country, with 182.2 million
(^5) Despite government of Pakistan favour for HRM, started from the first five-year plan (1955-1960) in which it was explicitly documented that the system of administrative practices and personnel management inherited from the British was considered outdated and inadequate (Jadoon and Jabeen,
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population (World Bank, 2013) (188 million according to a projection of the Government of Pakistan (2013-14), the second most populous among Islamic countries, and third most populous among those with a Muslim population (World Bank, 2013). It has a population growth rate of 1.95 percent (Government of Pakistan, 2013). It is indicated that its population will surpass 260 million in next twenty years. Due to its huge population, Pakistan is the world’s biggest youth bulge country, with 48% of the population aged between 15-49 years. Due to its population and numbers of youth, it has the 10th largest work force in the world (Government of Pakistan, 2013). According to a Government of Pakistan survey, its total labour force was 50 million in 2005-2006, growing to 59.7 million in 2012-2013. The survey shows that over 9 million people joined the country’s labour force within 5 years. However, the number of unemployed people increased from 3.10 million in 2005-2006 to 3.73 million in 2012-2013, bringing the total number of employed people to 56.01 million (Government of Pakistan, 2013).
Historically, Pakistan’s economy is based on agriculture, with 43.7% of the labour force currently employed in the sector (Government of Pakistan, 2013). However, due to growth in the industrial sector in the country, the percentage of the labour force employed by the agricultural sector has declined in the last 10 years (e.g., 46% in 1999 to 43.7% in 2013). Currently, the industrial sector (both manufacturing and service) employs 54.7% of the country’s labour force.
The industrial sector of Pakistan comprises 358 listed companies (Karachi Stock Exchange, 2015). However, the number of listed companies on the Karachi stock exchange has diminished during the last few years. In 2014, there were 557 companies listed on the Karachi stock exchange, while in the year 2000, 766 companies were listed there. This downturn in the number of companies operating in the country could be due to an unfavourable business, economic, political, and law-and-order environment in the country. Among different sectors, the textile sector remains the largest, with 62 listed companies in 2015, and 224 in the year 2000. According to a few studies (e.g. Khan and Ahmed, 2008; Fallahi, 2011), the country’s energy crisis has caused the major reduction in the number of textile companies as well as in other sectors. Currently, foreign investment and multinational companies are most active in sectors such as chemical/fertilizer, fuel and energy, banking, automobiles, and pharmaceuticals (Khan and Ahmed, 2008).
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Despite having the status of an agrarian country, the manufacturing and industrial sector has been growing continuously in the country. In the 1970s Pakistan implemented a nationalisation policy. In 1990s this policy was turned around and major public sector corporations were privatised. This trend attracted a new wave of foreign direct investment with multinational firms playing a role by formally introducing international management practices. This policy of privatisation (deregulation) enhanced economic growth and created a suitable business environment in the country. However, in the 2000s, Pakistan observed territorial and law-and-order unrest, which caused many of the multinational companies to withdraw their stake in the country (Gul, Hussain, Bangash and Khattak, 2010).
During the deregulation of the 1990s, the country saw significant growth in business and commercial activities, with both national and international firms growing in numbers and operations. The influx of foreign private investment created a demand for western business management knowledge, leading to the establishment of private business schools and the formation of business administration departments in all public universities. However, the next era, from the 2000s onwards, with a reduction in foreign direct investment and downturn of multinational firms, saw a number of business school graduates finding themselves surplus to requirements and struggling to find jobs. Despite this surplus, the volume of enrolment in business schools’ MBA programs continuously increased. This was due to widespread acceptance of the MBA as a passport to lucrative employment, that is, a career in specialised western business management knowledge (Calvillo, 2010; Saba et al., 2011), i.e., human resource management, which was demanded by national and international firms in the country.
Recognition of this demand by foreign business firms, and those local business organisations that had close connections with foreign firms, paved the way for formation of a large number of business schools and business educators. Consequently, today there are 164 universities and degree-granting institutes in Pakistan dealing with MBA programs, 92 in the public sector, and 72 in the private sector (Higher Education Commission of Pakistan, 2015). The majority of the private sector business schools claim
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affiliation with foreign universities, and operate on the western business education curriculum^6 (i.e., American modelled MBA programs).
Higher education in Pakistan possesses a myopic view of how a particular degree will bring glory to the family and the country. Higher education in engineering and medical science, for careers as engineers and medical doctors, had long been regarded as the best source of individual and family prestige. The era of information technology (IT) and computer wizardry shifted the orientation of higher education away from the engineering and medical fields. However, the orientation of higher education towards computer and IT studies, which could not last more than two decades in Pakistan, was followed by a shift in the higher education and professional orientation towards business education. MBA education, consequently, took over the position which had previously been enjoyed by engineering and medical education. It attracted the interest of many academics and potential practitioners (e.g., students, Alumni, and business managers) in joining the business and management field.
The roots of business education in Pakistan can be traced back to the time right after the creation of the country, when the country’s planners recognised Public Administration and relevant training and education as instruments of development and social welfare (Jadoon and Jabeen, 2010). It was suggested by government planners that the British legacy and its enacted administrative system as well as its business practices might not meet the needs of a newly independent nation which planned to become a modern welfare state (Jadoon and Jabeen, 2010). Subsequently, it was identified in the first five-year plan (1955-1960) that there was a need for a fundamental shift in the administrative mechanism in the country, since the system of administrative practices inherited from the British was considered outdated and inadequate. It was stated in the country’s first year plan that:
(^6) Higher education commission of Pakistan: List of HEC recognised universities and degree granting institutes: http://www.hec.gov.pk/Ourinstitutes/pages/Default.aspx 6 For example, Sukkur IBA has a memorandum of understanding with British Columbia University in North America, and with the University of Kent in the UK (http://www.iba-suk.edu.pk). Karachi IBA has exchange programs and a memorandum of understanding with North American institutions, e.g., Babson College, USA. (https://iba.edu.pk/ : http://www.babson.edu/news-events/babson- news/pages/100824-center-for-entrepreneurship-excellence-at-pakistans-institute-of-business- administration.aspx)
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“The defects as well as the merits of the existing administrative system stem largely from the fact that it is a heritage from a colonial power, which reared upon certain indigenous institutions a super-structure adapted to the needs of ruling a subject country. The combination yielded a system of public administration admirably suited to the requirements of a government engaged largely in the primary functions of collection of revenue, administration of justice, and maintenance of law and order. Under the stress of social and economic change, some alterations were made in this system from time to time, but, fundamentally and broadly, the methods and outlook of the public service, the tasks they performed, and the procedure they followed remained unchanged. The inevitable result has been that, with independence and the shift of emphasis from regulating the life of the community to positive action for promoting its welfare, the system has become outdated and seriously inadequate” (First five year plan, 1955-1960: 91).
Consequently, education and training for public administration became the centre of focus for the transformation of public administration. A need to establish university level education and training for pre-entry and in-service civil servants was recognised. United States technical assistance programs helped set up various public administration training and education institutions in the country (Jadoon and Jabeen, 2010). By the mid-1960s, a number of public administration educational institutions were established and become fully operational in the country. American public administration style was infused into those institutions by American professors, US consultants, and US-educated Pakistani academics and administrators. Similarly, the favourable environment for American influence and institutions led to a number of western business organisations, particularly American ones, establishing their subsidiaries in the country (Jadoon and Jabeen, 2010). The existence and mobilisation of American consultants, professors, and US-educated Pakistani academics and administrators, and their relationships with multinational corporations, paved the way for the establishment of business education through taking advantage of the existing American faculty in public administration institutions, and funding and structural support from American bodies such as USAID, the Ford foundation, the University of Pennsylvania etc.
In Pakistan, formal business education was started in 1956 with the establishment of the Institute of Business Administration (IBA) by the Wharton Business School of the