HRM Practices and Employee Performance in Public Sector Organizations in Pakistan : An Empirical Study

This paper undertakes the analysis of declining performance in Pakistani public sector organizations. The survey was conducted to examine the implementation of HR practices and determine their relationship/impact with/on employees' performance efficiency in organization. Design/Methodology/Approach The present study is based on the idea that HR practices affect performance all the way to inculcate with modern HR practices for organizational performance. A questionnaire based on 27 items was adapted for data collection from 120 managers of Lahore based eleven public organizations of Pakistan. Positivist school of thought was conceived for this study. Pearson correlation and regression tests were applied to test the hypotheses. Findings Perceptive measures give a clue of impact of HRM practices on individual and collective performance. Public organizations do not reflect steady performance. There is a dearth of research tools to measure effectiveness of HRM practices and their mutual complementarities. Complementarities and their effects ensure steady performance at individual and collective level to get strategic objectives in the public organizations of Pakistan. Limitations and Future Research Directions Research context was limited to Lahore based eleven public organizations because of limited access to these organizations. Future research may extend this to other cities as well as to provinces to prove more effective. Practical Implications Public organizations should ensure a good degree of employee participation in decision making within their job sphere with a viable compensation plan. If organizations in developing countries are desirous to get escalating performance from the employees, they should develop their indigenous HRM practices to inculcate with modern HR practices. Originality/Value Declining performance is the visible gap in public organizations of Pakistan due to lack of understanding of HRM practices. HRM practices and employees performance is a black box area to investigate