Malpractices is one of the problems in HR management mostly in underdeveloped or developing countries like Pakistan. Malpractices affect the health and prosperity of an organization which indirectly affects the national interest of the country. Pakistan’s economic growth is one the lowest in the region. It is realized that malpractices in majority of functional operation be it private or public is one of the critical reasons for Pakistan’s low growth. Since widely malpractices in private and public organizations affect the economic growth of the country, this study will help to uncover the malpractices, their common factors responsible for malpractices and the solution of the problem. This study was done on the private and public organizations of Pakistan. Countries having similar problems may also benefit from the study.