Do HRM Practices Influence Perceived Financial Performance? A Case of Banks in Pakistan


Volume 18 Issue 1 2022


Shariq Ahmed (Corresponding Author)
Karachi University Business School (KUBS), University of Karachi

Raja Rub Nawaz
Karachi University Business School (KUBS), University of Karachi

Dr. Sohaib Zaman
Karachi University Business School (KUBS), University of Karachi

Abstract Recently ubiquity in Human Resource Management (HRM) literature has been found and much more focus is directed towards exploring HRM practices and their effect on perceived financial performance of a firm. This study is an endeavor to contribute in the Pakistan context literature of HRM vis-à-vis Financial Performance paradigm. It was aimed at finding the relationship pattern of HRM practices over its contribution in firm’s performance. A questionnaire was deployed to ascertain the extent of relationship among the two and financial services sector was chosen to fill the questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for analysis to understand the structural dimensions of exogenous and endogenous constructs. Out of the six HRM practices, only two came out to be significantly impacting the perceived financial performance of firms. Compensation Policy and Decentralization results were found to be affecting the perception of employees towards the financial growth of the firms
Keywords HRM Practices, Perceived Financial Performance, PLS-SEM, Banking
Year 2022
Volume 18
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2414-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link