Analysis of Strategic Human Resource Management Practices in Small and Medium Enterprises of South Asia

Abstract

This empirical article aims to ascertain the impact & relationship of SHRM practices with service behavior among employees of SME's in Pakistan. Data was collected from 32 small & medium enterprises including Manufacturing, Consultants, Automotive, Fashion, Handicrafts, Surgical, Sports Goods & Customer Service sectors of 8 major cities of Pakistan by using stratified random sampling technique. The response rate was 76% as 180 questionnaires were distributed among front line employees, middle managers & executive managers and 38 questionnaires were returned back with 76% response rate and 118 questionnaires were found useable. Pearson's r correlation & linear regression analysis techniques were used to analyze the data on SPSS, PSAW version 22. According to results, the Regression model is weakly parsimonious & accounts for 33.3% of the variance. SHRM practices on the whole have positive moderate significant relationship (.337*) & positive impact (β = .787) on service behavior. In depth, training has positive weak significant relationship (.219*) & positive impact (β = .147), participation has positive moderate significant relationship (.499**) & positive impact (β = .432), job description has positive moderate significant relationship (.340**) & positive impact (β = .352), result-oriented appraisal has positive weak significant relationship (.222*) & positive impact (β = .015), internal career opportunities has positive weak significant relationship (.292**) & positive impact (β = .295) on service behavior. Employment security (.131) & profit sharing (- .054) have non-significant relationships with service behavior. This study facilitates the policy makers to adopt appropriate SHRM practices to foster service behavior among employees. This study was conducted in eight cities of Pakistan by using cross sectional research design. Future research direction is to expand the study by using longitudinal research design.