Local companies underperform: a comparative study of industries in Pakistan
Article Sidebar
Main Article Content
صندلی اداریAbstract
The capacity of the organization to produce high-quality products at the lowest cost with the fast pace of delivery of goods and services has the potential to determine the survival, sustainability, and growth of organizations in emerging globalization and competition. The researcher has critically examined the impact of people's development, employee welfare, leadership effectiveness, and Human Resources operations effectiveness in the context of local, Multinational Companies, and public sector organizations operating in Pakistan. This research has also considered previous studies. The study results show that the sustainability and growth of organizations depend on how engaged and motivated employees the companies have to be to achieve organizational goals. MNCs invest in best talent acquisition and development, take care of employee welfare, and consistently improve the system thus sustain and grow. It was discovered that the local companies still could not shift from ownership to corporate culture and leading by "Seth" (entrepreneur mindset) lacking professional approaches. The local organizations are penny-wise, by compromising on capacity building of people, employee welfare, leadership development, and implying an efficient system. Unlike MNCs, 'Seth' companies operate with low capacity employees, disengaged workforce, ineffective leadership, and obsolete systems and suffer huge hidden productivity and efficiency losses that are never surfaced and monitored. The data of this research was generated based on information provided by HR heads of 15 MNCs, local and public sector companies. HR experts were interviewed in focused groups and through questionnaires.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
Abou-Moghli, A. A. (2019). The Influence of Compensation Management Strategy on Talent Retention: Exploring the Mediating Role of Structural Capital. International Business Research, 12(3), 165–173.
Ahmad, M., Allen, M. M., Raziq, M. M., & ur Rehman, W. (2019). Converging HRM practices? A comparison of high performance work system practices in MNC subsidiaries and domestic firms in Pakistan. Employee Relations: The International Journal.
Aktar, A., & Pangil, F. (2018). Mediating role of organizational commitment in the relationship between human resource management practices and employee engagement. International Journal of Sociology and Social Policy.
Akter, N. (2016). Employee Training and Employee Development Is the Predictors of Employee Performance; A Study on Garments Manufacturing Sector In Bangladesh. Journal of Business and Management, 18(11), 48–57.
Bhuiyan, F., Rahman, M. M., & Gani, M. O. (2015). Impact of human resource information system on firm financial performance. International Journal of Business and Management, 10(10), 171.
Buil, I., Catalán, S., & Martínez, E. (2020). Understanding applicants’ reactions to gamified recruitment. Journal of Business Research, 110, 41–50.
Caesens, G., Stinglhamber, F., Demoulin, S., & De Wilde, M. (2017). Perceived organizational support and employees’ well-being: The mediating role of organizational dehumanization. European Journal of Work and Organizational Psychology, 26(4), 527–540.
Conway, E., Fu, N., Monks, K., Alfes, K., & Bailey, C. (2016). Demands or resources? The relationship between HR practices, employee engagement, and emotional exhaustion within a hybrid model of employment relations. Human Resource Management, 55(5), 901–917.
Creswell, J. W., Plano Clark, V. L., Gutmann, M. L., & Hanson, W. E. (2003). Advanced mixed methods research designs. Handbook of mixed methods in social and behavioral research (pp. 209–240). Thousand Oaks, CA: Sage.
Dachner, A. M., Ellingson, J. E., Noe, R. A., & Saxton, B. M. (2019). The future of employee development. Human Resource Management Review, 100732.
Dictionary, C. (2015). Mentor. Cambridge dictionaries online.
Dmour, D., Hani, R., Obeidat, D., Yousef, B., Masa’deh, R., Almajali, D., & Abdelkarim, D. (2015). The practice of HRIS applications in business organizations in Jordan: An empirical study. Conference Proceedings (COES&RJ-CP2-5), ISBN (E), 978–969.
Egbuta, O. U., & Akinlabi, B. H. P. (2019). Influence of Organizational Support Practices on Employees’ Career Development in the Nigerian National Petroleum Corporation.
Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1–4.
Hanaysha, J. (2016). Examining the effects of employee empowerment, teamwork, and employee training on organizational commitment. Procedia-Social and Behavioral Sciences, 229(298–306), 298–306.
Igbaekemen, G. O., & Odivwri, J. E. (2015). Impact of leadership style on organization performance: A critical literature review. Arabian Journal of Business and Management Review, 5(5), 1–7.
Jyoti, J., & Bhau, S. (2015). Impact of transformational leadership on job performance: Mediating role of leader–member exchange and relational identification. Sage Open, 5(4), 2158244015612518.
Kakar, P., Raziq, A., & Khan, F. (2015). Impact of human resource management practices on employee retention: A case of banking sector in Quetta Baluchistan. Journal of Management Info, 5(1), 97–119.
Keating, L. A., & Heslin, P. A. (2015). The potential role of mindsets in unleashing employee engagement. Human Resource Management Review, 25(4), 329–341.
Kenny, S. (2019). Employee productivity and organizational performance: A theoretical perspective.
Khan, Z., Rao-Nicholson, R., Akhtar, P., Tarba, S. Y., Ahammad, M. F., & Vorley, T. (2019). The role of HR practices in developing employee resilience: A case study from the Pakistani telecommunications sector. The International Journal of Human Resource Management, 30(8), 1342–1369.
Kim, T. H., Khaltar, O., & Moon, M. J. (2019). The Effects of Intangible and Tangible Resources on Performances of Social Enterprises: Dualities in Resources and Performances. EasyChair.
Kossek, E. E., & Perrigino, M. B. (2016). Resilience: A review using a grounded integrated occupational approach. The Academy of Management Annals, 10(1), 729–797.
Lawanne’S, R.-G. (2016). Exploring the relationships between leadership styles and job satisfaction among employees of nonprofit organizations [PhD Thesis]. Regent University.
Li, H., Sajjad, N., Wang, Q., Muhammad Ali, A., Khaqan, Z., & Amina, S. (2019). Influence of transformational leadership on employees’ innovative work behavior in sustainable organizations: Test of mediation and moderation processes. Sustainability, 11(6), 1594.
Lina, M. A., Ali, M. M., & Hossain, M. A. (2016). Contemporary Challenges of Human Resource Management.
Longoni, A., & Cagliano, R. (2016). Human resource and customer benefits through sustainable operations. International Journal of Operations & Production Management.
Mufti, O., Parvaiz, G. S., Wahab, M., & Durrani, M. (2016). Human Resource Competencies and Organizational Performance: A Study on Banking Sector Managers in Pakistan. Journal of Managerial Sciences, 10(1).
Nelissen, J., Forrier, A., & Verbruggen, M. (2017). Employee development and voluntary turnover: Testing the employability paradox. Human Resource Management Journal, 27(1), 152–168.
Ojokuku, R. M., Odetayo, T. A., & Sajuyigbe, A. S. (2012). Impact of leadership style on organizational performance: A case study of Nigerian banks. American Journal of Business and Management, 1(4), 202–207.
Patiar, A., & Wang, Y. (2020). Managers’ leadership, compensation and benefits, and departments’ performance: Evidence from upscale hotels in Australia. Journal of Hospitality and Tourism Management, 42, 29–39.
Patro, C. S., & Raghunath, K. M. K. (2018). Employee Welfare Measures: The Impact on Employees’ Efficacy and Organizations Productivity. In Management Strategies and Technology Fluidity in the Asian Business Sector (pp. 215–234). IGI Global.
Pradhan, R. K., Dash, S., & Jena, L. K. (2019). Do HR practices influence job satisfaction? Examining the mediating role of employee engagement in Indian public sector undertakings. Global Business Review, 20(1), 119–132.
Rajalingam, Y., Jauhar, J., & Bashawir, A. G. (2015). A study on the impact of empowerment on employee performance: The mediating role of appraisal. International Journal of Liberal Arts and Social Science, 3(1), 92–104.
Rana, M. H., & Malik, M. S. (2017). Impact of human resource (HR) practices on organizational performance. International Journal of Islamic and Middle Eastern Finance and Management.
Raziq, A., & Wiesner, R. (2016). High performance management practices and sustainability of SMEs. Evidence from manufacturing and services-based industries in Pakistan. Journal of Management Sciences, 3(2), 83–107.
Saasongu, N. (2015). Effects of leadership style on organizational performance in small and medium scale enterprises (SMEs) in Nigeria. International Journal of Research in Management & Business Studies, 2(2), 23–30.
Sheikh, U., & Naveed, A. (2016). The impact of hr practices on the performance of multinational companies operating in Pakistan. Gomal University Journal of Research, 32(1), 179–188.
Sirisha, K., & Kumar, K. P. (2019). Impact of welfare measure on ability skill attainment. Complexity International, 23(03).
Sougui, A. O., Bon, A. T., & Hassan, H. M. H. (2015). The Impact of Leadership Styles on Employees’ performance in Telecom Engineering companies. Australian Journal of Basic and Applied Sciences, 8(4).
Spano-Szekely, L., Griffin, M. T. Q., Clavelle, J., & Fitzpatrick, J. J. (2016). Emotional intelligence and transformational leadership in nurse managers. JONA: The Journal of Nursing Administration, 46(2), 101–108.
Suparno, Y. (n.d.) (2015). Islamic Business Etics Principles And Employee’s Welfare. International Seminar on Business Ethics in the ASEAN Economic Community 2015.
Sutanto, E. M., & Kurniawan, M. (2016). The impact of recruitment, employee retention and labor relations to employee performance on batik industry in Solo City, Indonesia [PhD Thesis]. Petra Christian University.
Vetrakova, M., Durian, J., Seková, M., & Kaščáková, A. (2016). Employee retention and development in pulp and paper companies. BioResources, 11(4), 9231–9243.