Examining the Impact of Human Resource Practices on Organizational Performance: A comprehensive study of Small and Medium Enterprises (SMEs) in Pakistan.

Abstract

The study was conducted to examine the relationship between human resource practices and organizational performance. The study was quantitative and correlational research method was used to determine the relationship. The approach used in this study is explanatory and deductive.270 employees selected as a sample of the study. Yamane's formula was used to determine the sample size. Out of 270,200  responses  were  found  usable  for  analysis after data screening. Close-ended questionnaire was used to collect the data from employees working at SMEs in Karachi (Pakistan) using simple random sampling technique. PLS-SEM  (Partial  Least  Square  Structural  Equation  Modelling)  was  deployed for analysis. The  suggested  research  model is supported by Resource Based View and Ability Motivation Opportunity-AMO theory. Different types of reliability and validity analysis were also conducted to measure the accuracy of the methods. The results of this study provide strong support for the importance of HR practices in driving organizational performance. HR practices examined were found to have significant positive impacts on organizational performance.