Download Strategic HR Practices, Employee Empowerment and

Strategic HR Practices, Employee Empowerment and
Organizational Performance: Empirical findings from
small and medium enterprises of Karachi
Presenter
Saba Mateen-Iqra University
Co-Author
Dr. Naveed R. Khan- Iqra University
INTRODUCTION
• The business risk and its uncertainty are increasing
day by day.
• According to the World Bank (2011), total number of
population is around 176 million in which the
majority of the people are youngsters.
• As far as the GDP of Pakistan is concerned, this
commodity sector provides contribution of 46.5 %
towards the GDP (Economic Survey of Pakistan,
2011).
• According to SMEDA (2006), Pakistan 90% of the
firms came under the classification of Small and
Medium sized enterprises
INTRODUCTION
• Federal Board of Statistics demonstrates that 65%
of enterprises are located in Punjab, 18% of
enterprises are in Sindh and 14% of enterprises
are in KPK whereas 3% of enterprises are located
in Baluchistan and Islamabad respectively.
• Three classes were defined for the SME’s that
includes the size of the employment, the annual
sales and lastly the paid up capital.
PROBLEM STATEMENT
• “The SME’s in Pakistan lacks in practicing the
Human resource practices .”
• According to (Cassell et al., 2002) that
employment practices are found to be very
diminutive in the measure tasks list of the Smaller
or medium sized firms.
• Due to financial restraints & growth constraint,
smaller firms focus more on utilizing the existing
resource effectively and efficiently (Gallego et al.,
2012).
Cont.
• In Pakistan, SMEs are not properly utilizing
their work force therefore the organization’s
most treasured resources are ignored, i.e.
Human resource. (Khan et al., 2013).
RESEARCH OBJECTIVE
• RO: To examine the impact of strategic HR
practices and employee empowerment on
organizational performance in small and
medium enterprises of Karachi.
LITERATURE REVIEW
• According to Moideenkutty et al (2011) the best
human resource management practices implemented
in the Oman Sultanate i.e. staffing, performance
management and empowerment are positively
associated with the performance of the organization.
• Yang (2011) conducted a study and identified the bond
between performance of the Taiwan manufacturing
firms and the practices of Human resource
management. The author used conceptual framework
for his discussion on the practices and the
performances.
Cont.
• Muhammad Abdul Rauf (2007) in Lahore,
Pakistan is based on the HRM practices and SME’s
performance in garment manufacturers which
explains that the formal HRM Practices have a
significant and a positive effect on the
performance of the firm.
• Another research conducted by Abdul Raziq
(2011) on SME’s is related to the comparative
analysis of Human resource management
practices between manufacturing and service
sectors in Karachi, Pakistan.
Theoretical Framework
• Resource Based View (RBV)
• RBV focuses on intra-organizational
perspective and argues that performance of
the firm is due to their specific resources and
capabilities (Barney, 1997).
Proposed framework
Hypotheses
• Ha1: There is a significant relationship between selective
staffing and organizational performance
• Ha2: There is a significant relationship between employee
empowerment and organizational performance
• Ha3: There is a significant relationship between
performance management and organizational
performance
• Ha4: There is a significant impact of selective staffing,
employee empowerment and performance management
on organizational performance.
Methodology
Research Approach
Research Purpose
Quantitative Approach
Explanatory
Data Source
Data Collection
Instrument
Primary data
Survey Questionnaire ( Likert scale)
Sampling Technique
Target Population
Sample Size
Statistical technique
Convenience Sampling
SME’s from Karachi.
215 respondents
Correlation and Multiple Regression
Analysis
12
Results
Table 4.1: Correlations
Selective Staffing
Employee
Empowerment
Performance
Management
Organizational
Performance
1
Pearson Correlation
Selective Staffing
Sig. (2-tailed)
.740**
Employee
Empowerment
1
Pearson Correlation
Sig. (2-tailed)
.000
.803**
Performance
Management
.772**
Pearson Correlation
Sig. (2-tailed)
.000
.000
.585**
Organizational
Performance
1
.484**
.601**
Pearson Correlation
Sig. (2-tailed)
.000
.000
.000
1
Regression
Table 4.2: Model Summary
Model
1
R
.626a
R Square
.391
Adjusted
R Square
.383
Std. Error of the Estimate
5.00956
d
i
m
e
n
s
i
o
n
0
a. Predictors: (Constant), Performance Management, Employee Empowerment, Selective Staffing
b. Dependent Variable: Organizational performance
df
F
Sig.
3
211
215
45.216
.000 b
Cont.
Table 4.2a Coefficientsa
Unstandardized Coefficients
B
2.503
Std. Error
.219
.321
.101
Employee
-.036
empowerment
Performance
management
(Constant)
Selective
staffing
.448
Standardized
Coefficients
T
11.406
Sig.
.000
.303
3.195
.002
.079
-.041
-.456
.649
.116
.388
3.865
.000
a. Dependent Variable: Organizational performance
Beta
Conclusion
• This study provides a better understanding about the
utilization of specific HR practices in order to obtain
high organizational performance of SME’s functioning
in Karachi, Pakistan.
• The findings of this research statistically examined and
conclude that the relationship among st the selective
staffing and performance management practices has a
positive impact on the Organizational performance of
SME’s whereas the empowerment did not have a
positive impact on the organizational performance.
Conclusion
• Empirically and theoretically, organizational
performance can be increased by the adaption of
Specific HR Practices such as Selective Staffing &
Performance Management.
• The suggestions for SME’s of Karachi is that the
SME’s needs to work hard on implementing the
Selective Staffing and Performance Management
Practices and owners or managers of the SMEs
needs to increase the scope of HR Practices, which
will help in getting the high level of productivity,
employee satisfaction, customer satisfaction which
ultimately results in high organizational performance.
Thank You