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Human Resource Practices in SME Sector: An Exploratory Case Study of Pakistan

Author

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  • Naveed R Khan

    (Faculty of Management and Economics, Malaysia)

  • Mustafa Rehman Khan

    (Faculty of Management Sciences, Pakistan)

Abstract

The role of human resource practices (HRP) at its significance in small and medium enterprises (SME) become an emerging topic, especially in developing countries. This study aims to gauge the level of HR practice being exercise in SME. Quantitative approach has been followed and data was collected from 195 SMEs through a structure questionnaire. Findings suggested that SME are performing moderate level of HR practices and owner/managers are aware with the importance of HR practices in their organizations. Moreover, compensation is the most significant factor of HR practices followed by employee performance, recruitment and selection and training and development. HR function has been substantially implemented and HR practices are being carried out in number of SME and is contributes at all phases of organization’s functions. The globalization and dynamic milieu is forcing the SME sector to switch informal functions to formal manner. However more coherent approach is required to replace the traditional way of practicing HR functions. This study validates the implementation of HR practices in SME as documented in the literature. It further provides a reference for academicians and practitioner to build upon a contention for future research.

Suggested Citation

  • Naveed R Khan & Mustafa Rehman Khan, 2012. "Human Resource Practices in SME Sector: An Exploratory Case Study of Pakistan," EuroEconomica, Danubius University of Galati, issue 3(31), pages 7-19, August.
    • Handle: RePEc:dug:journl:y:2012:i:3:p:7-19
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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/1396/1309
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    References listed on IDEAS

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    1. Manjari Singh & Neharika Vohra, 2005. "Strategic Human Resource Management in Small Enterprises," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 14(1), pages 57-70, March.
    2. Mahendra Adhi Nugroho, 2012. "Correlations of Attitude to Avoid Sharing Risk and Trust with Informal Knowledge Sharing," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 1(3), pages 86-95.
    3. John Paul Macduffie, 1995. "Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry," ILR Review, Cornell University, ILR School, vol. 48(2), pages 197-221, January.
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    2. Naveed R. Khan & Marinah Awang & Che Mohd Zulkifli, 2013. "Small and Medium Enterprises and Human Resource Practices in Pakistan," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(2), pages 460-471, February(.
    3. Emil Knezovic, 2018. "The Influence Of Strategic Hr Practices On Organizational Performance In Micro Companies," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 16(2), pages 53-62, November.

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