Purpose

This empirical paper aims to ascertain the impact & relationship of SHRM practices with service behavior among employees of SME’s in Pakistan.

Methodology

Data was collected from 32 small & medium enterprises including Manufacturing, Consultants, Automotive, Fashion, Handicrafts, Surgical, Sports Goods & Customer Service sectors of 8 major cities of Pakistan by using stratified random sampling technique.180 questionnaires were distributed among front line employees, middle managers & executive managers.138 questionnaires were returned back with 76% response rate.118 questionnaires were found useable. Pearson's r correlation & linear Regressions analysis techniques were used to analyze the data on SPSS PSAW version 22.

Findings

According to results, the Regression model was weakly parsimonious & accounts for 33.3% of the variance. SHRM practices on the whole had positive moderate significant relationship (.337*) & positive impact (β=.787) on service behavior. In depth, Training had positive weak significant relationship (.219*) & positive impact (β=.147),Participation had positive moderate significant relationship (.499**) & positive impact (β=.432), Job Description had positive moderate significant relationship (.340**) & positive impact (β=.352), Result-Oriented Appraisal had positive weak significant relationship (.222*) & positive impact (β=.015), Internal Career Opportunities had positive weak significant relationship (.292**) & positive impact (β=.295) on service behavior. Employment security (.131) & Profit Security (-.054) had non-significant relationship with service behavior.

Practical Implications

This study facilitates the policy makers to adopt appropriate SHRM practices to foster service behavior among employees.

Limitations

This study was conducted in eight cities of Pakistan by using cross sectional research design. Future research direction is to expand the study by using longitudinal research design.

Key Words

Strategic Human Resource Management, Service Behavior, SME’s, Pakistan

Paper Type

Empirical Paper