HR PRACTICES IN PAKISTANI SMEs

Topic: Submitted by:

HR PRACTICES IN PAKISTANI SMEs Asim ul Haq

Roll: no:

11574

Program:

M.S/M.Phil

Department of Management Sciences| Hajvery University, Lahore.

HR PRACTICES IN PAKISTANI SMEs

ROLE OF HUMAN RESOURCE PRACTICES ON PAKISTANI SMALL AND MEDIUM ENTERPRISES Abstract
Human resource management (HRM) is a new concept for Pakistani Small and medium Enterprises; there are few studies on HRM practices and its impact on enterprise performance in Pakistani small and medium sized enterprises (SMEs). In order to develop a sound HRM system, the organization should have effective Human Resource Management practices.HRM practices refer to organizational activities directed at managing the pool of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals. HRM practices may differ from one organization to another and from one country to another. The investigation of the relationship between human resources management and the company performance has mostly been carried out in big companies only. The question we have raised is whether the development of an intensive HRM is profitable for small and medium enterprises or not. This paper attempts to provide a pilot study of examining the status quo of HRM practice in Pakistani small and medium enterprises, and searching for possible relationship between HRM and enterprise performance.

Introduction
Small and Medium enterprises (SMEs) are considered as an important component of the economy in some developing countries like Pakistan. The SME sector is a less formally organized sector in the country and the economic environment also creates structural problems which hinder enterprise competitiveness. SMEs are considered as backbone of Pakistani economy as according to Small and Medium Enterprises Development Authority (SMEDA the only official managerial authority for small business management in Pakistan) it is fair to say that our economy is an economy of SMEs. SMEDA has formulated an SME policy for further implementation to boost up this sector in the country. It is important to note that Government of Pakistan approved this SME policy for the first time in January 2007. Small firm management comes across several challenges which badly impact firm productivity and performance. Since last decade, the government of Pakistan is continuously engaged in formulating and implementing policies to assist SME sector so that it can play its role in the economic development of this country.

Research Objective
This proposed study will investigate HRM system (policy, structure and practices) in SMEs. Investigation and evaluation of HRM sophistication and its association with SME performance, is an interesting and challenging job especially when investigating this for SMEs of an underresearched developing country. Recommendation of this study will be very important for poor performing and/or unsuccessful SMEs. This study will add to determine the influence of HR Competencies on HR professionals effectiveness.
2 Department of Management Sciences| Hajvery University, Lahore.

HR PRACTICES IN PAKISTANI SMEs

Problem Statement
There are many issues in Pakistani SMEs that need to be addressed, however, this paper just concentrates on human resources management practice in SME sector, discussing the Interrelationship between HRM practice and enterprise performance that has been studied rarely in detail before in Pakistan.

Methodology
This preliminary study has mainly employed the quantitative method (i.e. survey questionnaire) in order to understand the better picture of HR professionals effectiveness and their competencies in SMEs in Pakistan. The survey research have inherent strengths compared to other research methods is ideally suited for remotely collecting data about a population that is too large to observe directly HRM and Pakistani SMEs Pakistan is facing a big challenge to manage its human resource in many aspects, especially for small business management which constitutes up to 78% of all private enterprise employment as mentioned above. Small business constitutes major part in any economy which can play key role in developing countrys economy but how and what are the ways which can lead to that development is still unidentified and lack of interest to disclose is continued at both government and private level in this country. Pakistani SMEs having dynamic and varied characteristics, possessing some sort of HRM picture is still a question mark. The proposed study can add something important and valuable to the empirical work on this specific context. At the same time, cross cultural applicability of different management practices is also questionable

Department of Management Sciences| Hajvery University, Lahore.