Impact of Human Resources Management Practices on Turnover, Productivity and Corporate Financial Performance

Abstract

In developing countries, the human resource availability is quite easy but the most unfortunate part is its effective and efficient management. It is a well established fact that it is human beings behind the machines which can drive or drown the organizations. Human behavior and psychology is driven and motivated by varying degree of factors. The researchers across the globe have evolved and successfully practiced certain HRM techniques in order to achieve best performance and productivity from human capital. Unfortunately this area remained neglected and human resource could not be exploited to its full potential in Pakistan despite the fact that the country possesses  one of the best human capital in the world. This paper is an Endeavour to identify the best Human Resource Management practices applicable to Pakistani environments and analyze their positive effects on labor turnover, productivity and corporate financial performance. In order to achieve this objective, a survey questionnaire was designed and disseminated among respondents. A total of 200 questionnaires were distributed, out of which 145 completed questionnaires were received. The authors analyzed the data by using statpro software. the major conclusions and findings were; Need for articulation of vision, mission and values for organization, lack of performance management system, lack of benefit and compensation program, issue of corporate loyalty, poor workforce alignment, absence of HR development and training programs, lack of Human Resource Information System(HRIS),and non adoption of TQM.

Keywords: HRM, Productivity, Pakistan, Turnover.