High Performance HRM and Establishment Performance in Pakistan: An Empirical Analysis

Purpose: Despite a growing literature on human resource management in emerging economies, evidence from Pakistan is limited. There is scant information on both the HR practices that indigenous workplaces adopt and their associations with HR-related outcomes. This paper fills that gap by examining whether universalistic assumptions about the applicability of ‘high performance’ HR practices are valid in Pakistan, a country with religious values and organizational traditions that differ to those in the West. Design/methodology/approach: This study draws on the, to date, most comprehensive survey of indigenous establishments in Pakistan. The data were analysed using logistic regressions. Findings: Workplaces, in general, adopt several ‘high performance’ HR practices, such as extensive training, career breaks, rigorous pre-employment candidate assessment, and the sharing of strategic information with employees. Attitude surveys and the provision of training in a variety of jobs to non-managerial employees are consistently associated with better HR-related outcomes (absenteeism, quit rates, and labour productivity). Overall, the paper finds some limited support for the applicability and efficacy of high-performance HRM practices in Pakistan. Such practices conform to Islamic principles. The results also indicate, however, that cultural traits play a role in how those practices are implemented. Social and practical implications: Increased adoption of certain HR practices by establishments in Pakistan may also help to improve the working conditions and employment prospects of employees and may also ameliorate the country’s sluggish economic growth rates.