Abasyn Journal of Social Sciences. Special Issue: AiCTBM 2016

Impact of HRM on Organizational Performance of SME Sector in Pakistan

Aqeel Ahmad, Muhammad Tayyab.

UCP Business School, University of Central Punjab, Lahore (Pakistan),
MS (Management) Scholar, Department of Business Administration, Leads Business School,Lahore Leads University, Lahore (Pakistan).


The purpose of this study is to investigate the impact of HRM Practices on perceivedorganizational performance in the small and medium enterprise (SME) sector of Pakistan. Inthis study Recruitment & Selection, Training & Development and Reward & Compensationare used to measure the perceived organizational performance. This research is quantitativein nature and questionnaire covers three items of HRM practices including Recruitment &Selection, Training & Development and Reward & Compensation which are used to check itsimpact on perceived organizational performance in SME sector of Pakistan. The results ofthis study are based on 342 respondents of different manufacturing, trading and servicesorganizations from SMEs located in different areas of Lahore, the most important and busiestcity of Pakistan. Descriptive, correlation and regression tests were used and results wereobtained. These results show that there is significant and positive correlation between thesaid HRM practices and the perceived organizational performance of SME sector ofPakistan. The regression results show that there is significant and positive impact of the saidHRM practices on perceived organizational performance. So, this study concludes that thesaid HRM practices can improve the effectiveness and efficiency of SME sector byimplementing them in this sector of Pakistan.
Keywords: Recruitment & Selection, Training & Development, Compensation & Reward,Perceived Organizational Performance, SME Sector of Pakistan.


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