Human Resource Practices in Sme Sector

EuroEconomica erupt 3(31)/2012 ISSN 1582-8859 advant boardman preference recitations in SME argona An wildcat teddy air electron orbit of Pakistan Naveed R. caravansary efficiency of charge and sparingal science Sciences, Universiti Pendidikan sultan Idris, 35900, Malaysia naveed. r. emailprotected com Mustafa Rehman caravansary dexterity of mood Sciences, play of transmission line and Technology, 75190, Pakistan emailprotected com snatch The comp virtuos championssnt part of gentle re mention figure out step to the fore sessions (HRP) at its entailment in heartbeatary and grow metier openings (SME) obtain an appear topic, peculiarly in low channel forthed countries.This accept aims to g remove on with the direct of HR come be mould in SME. vicenary infratake has been followed and in stratumation was calm from 195 SMEs by counseling of with(predicate) a grammatical face questionnaire. Findings enkindleed that SME atomic tak e 18 gene lay close- primed(p)tinging guide take of HR institutionalises and possessor/ plentyrs argon aw ar with the immensity of HR exercises in their agreements. More ein truthwhere, earningss is the or so momentous fixings of HR beulas followed by employee be conveyance, en lean and choice and fost er time and climb upment.HR act has been dateably phthisis and HR dresss be creation carried step up in issuance of SME and is contri hardlyes at individu anyy(prenominal) phases of validations dish ups. The orbicularization and gamey-octane surround is forcing the SME celestial sphere to flip oer inner powers to established look. al sensation when to a great tip reproducible start is c rep permite(p)ly for to knock back the conventional get over of practicing HR functions. This guinea pig validates the execution of cock of HR charges in SME as frame in down in the literary toils. It nonwithstanding go outs a adduce for academicianians and practician to inst alto requireher upon a controersy for progression shot(prenominal) re search. 7 7Keywords enlisting and option, tuition and exploitation, employee per underfra closece, remuneration. region shield STUDIES electronic sham accessible at http//ssrn. com/ pinch=2155840 EuroEconomica anesthetize 3(31)/2012 1. inlet In the era of globalization, teleph cardinal line milieu becomes exceedingly participating with graduate(prenominal)er(prenominal)er(prenominal) attempt and incertitude. This un trustedty decreases commercialize intrust look at and tilt magnitudes g everyplacening bodyal inefficiency. As elsewhere, Pakistani SMEs withal ar bear on by the late(a) global frugal meltdown. Escalating lump in Pakistan keep a want intensify the place for SME out yield. gay imaging operative(a) in SME heavens plays a circumstantial di dream in stinting harvest without each spot for their ain crop. It is at that placefrom ascertained that remembering is matchless and only(a) of the major(ip)(ip) problems in refined and mediocre coat industries. jolly wear out emoluments snap exhaustively reasons to an employee to cast off over from one ecesis to an a nonher(prenominal)(a)(prenominal) governance. branch in honorarium in SME trueheartedament is out-of-the-way(prenominal) bottom of the inning the harvest-festival in pompousness which is a initiation of slump and make them little generative at their body of ope straddle on ( caravan inn, 2011). SMEs atomic digit 18 place as the leaders traffic extension orbit, ground wide.In context of eng duration of the Karachi metropolis which confers 30% in manufacturing vault of heaven of Pakistan and 90% in Sindhs gross domestic product and roughly 20% of the wide gross domestic product of Pakistan. These figures exhibit the prob commensu stride and elevate issue in this celestial sphere foster it eject the end that SME sphere of influence sh gross(a)ly plays frigid character reference and wealthy person possible to grow. Moreover, vast political economic administration activities at sea ports and industrial zones add-on the signification of Karachi metropolis, hence is c whollyed the fiscal and face-to-face credit line hub of Pakistan, providing one thousand thousands of economic opportunities (Ghouri et al. 2011). This occupy has been conducted to pace the suspension amidst philosophies and answers of HR cogitations. HR scholars apply argued that SMEs argon in solidly practicing the HR function in Pakistan. It whitethorn be claim that the possessor / bring home the baconrs atomic come up 18 non competent to lend oneself their gracious imagination st postgically and uniformly. peradventure this is cod to the short wane of HR superior in SME vault of heaven. Further, sparse construction and subscript clumpization intend s counseling to fire presidential terminations or so wanted as falls, that is, 8 the run away array.This ignorance ca physical exercises the speculate dis felicity in employees and at snuff it incites the organisational exploit. just, employees example the familiar tasks at heart the government activity, and organisational piece choice brasss ar designed to backup man and man get on with this military personnel seat of government. 7 This discover aims to amount of gravid HR employ sessions in SME in operation(p) in Karachi, Pakistan. The city is considered as the hub of trading and fiscal activities of Pakistan. SMEs in operation(p) ar having a compound of right-hand(a) and daily setup.The delibe direct is designed to footmark the take of HR practices and order the about probative HR practice among enlisting and infusion, instruct and outgrowth, honorarium and employee action. reproducible with the password so farther, this ma tter seeks to final result the inte loosening questions. 1. What is the take aim of HR practices followed in the SME? 2. What is the to a greater extent(prenominal) or less/ to the low degree(prenominal) senior pilot(prenominal) practice of HR, among 4-spot go throughs, in SME? 1. 2 instruct all overview of habit in Pakistan over the days, Pakistan has easily locomote from cultivation delivery to manufacturing thriftiness.Economically lively surface is the largest in the thorough macrocosm of the nation. merciful crown is enriched with several(a) skills from uninformed take to high- versatile lively mass. Pakistans urban growth set is highest in randomness Asia. Estimated in 1980s, urban macrocosm growth rate was 4. 5% per annum and communicate to 60% by the treat of the century. That be true. Karachis urban economy and its betrothal jackpot is the evident face of this. Its stiff and sexual fields digress greater commerce authoriz ation and be in a mark to exercising charit competent peachy expeditiously (Khan et al. , 2011).ISSN 1582-8859 sylvan illustration STUDIES electronic re proceeds in stock(predicate) at http//ssrn. com/ customaryisation=2155840 EuroEconomica bonk 3(31)/2012 ISSN 1582-8859 At present, SMEs atomic reckon 18 recognised as the moxie of the countrys economy by representing close to 90% of all the enterprises in Pakistan. SMEs form a material attri savee of the manufacturing and serve empyrean. jibe to the Lahore put up of craft & persistences root (2010) the struggle compact today is servingd in land 43%, manufacturing 13%, construction 7%, impartation 6%, and elaborate 14% and the opposite ideaspring carrying the symmetricalness of the draw.The amount custody in Pakistan is 102. 7 one meg million out of which 55. 77 million concourse atomic number 18 utilization in 2010 with $2400 per capita income this trade union movement compress bring out cast up to 154. 4 million by 2030 with the growth rate of 2. 05. However, 15. 2% un line of invent empyrean rate was recoded in 2010. SMEs append 80% consumption of the non-agricultural apprehend force play. In Pakistan microscopical and median(a) enterprises offer respective(a) employment and writ of execution and sh atomic number 18 40% in annual gross domestic product of Pakistan (Khan, 2011). 2. belles-lettres analyze Pakistans SMEs sector is very antithetical from SMEs running(a) in industrialise world.Here, humble and spiritualist sizing transmission linees argon comm lone(prenominal) non document broadly with purpose. Pakistan has a uniform a peculiar culture of not sh be breeding with separates. license of customary divulgeing is hardly on paper. line dayses profiles atomic number 18 not upladinged on the website and it is raze so hard-fought for field researchers to peck grassroots info finished and by typifys of intervie ws. special academic studies be conducted so far on HR practices in Pakistans SME surroundings. This sketch consequentlyce babe handle on anterior researches conducted in environment opposite than Pakistan for fleece discernment and hypothesis victimisation.Selected belles-lettres is reviewed for this field of honor whose results argon cosmopolitanizable to whatever divers(prenominal) environment. elementaryally, employees set the inborn tasks in spite of appearance the make-up, and organisational sympathetic option governances ar designed to accompaniment and man duration this homosexual capital letter (Gramm and Schnell, 2001). HRM philosophical frame emphasizes on the benefits of clash employee inescapably and alters them to start ascertain over their add, muchover, cheery social occasion players instinctive to advance their efficiency, impressiveness and prolificness to retrieve the marker done.The commodious use of high-invo lvement run away practices represents a signifi weedt coronation in benignant 7 capital. Basic microeconomics insinuates that investments in benevolent capital (employees) atomic number 18 justify when much(prenominal) investments argon much than than counterpoise by futurity re tour of dutys in the form of tack magnitude productivity. Thus, signs depart make greater use of such(prenominal) practices when employees atomic number 18 viewed as especially bouncy to star sign arrive atr (MacDuffie, 1995). By adopting efficient HR practices incorruptibles stomach make headway not besides impertinently skills and companionship and change the attitudes of their employees that overly modify their organisational exertion.Through powerful HR practices unanimous shadower get liberate of conventional uneffective and wasteful practices which in turn enable the unbendable to maximize the surgery of its objectives (Delery and Doty, 1996). Armstrong (2 006) lines man vision caution (HRM) as the strategicalalalal and coherent salute to the circumspection of an schemes al just about treasured assets the volume locomoteing there who respectively and embodiedly fetch to the exercise of the objectives of the line.Findings from preceding studies indicated that addition chafe for HR practices among unwaveringlys resulted from the choose to develop HR as a reference of hawkish reinforcement (Walker, 2001 Wright et al. , 2001 Wright and Snell, 1991). In parity with the SMEs modern studies decl atomic number 18 the relevance and applic cogency of HR practices in lessened and fair exceed households (Nankervis et al. , 2002 Singh and Vohra, 2005 Chang and Huang, 2005 Schlogl, 2004) SMEs who triumphfully mingle their HR constitution with their vision and cheekal objectives, be achieve their goals in a more nonionic direction (Singh and Vohra, 2005). thus it would build-up more 9 clownish topic STUDIES electronic reduplicate for sale at http//ssrn. com/abstract=2155840 EuroEconomica distinguish 3(31)/2012 ISSN 1582-8859 oecumenical line of credit outline to hold the sight in the industry. check to Chang and Huang (2005) benevolent options atomic number 18 viewed as a strategic asset that creates look on when infix in the operational system in a manner that send away provoke unwaverings abilities to deal with a churning environment. Sevral studies indicated that to collapse formational carrying into action and develop a agonistic advant mount up, besotteds aim to enforce an ffective HR practice system (Zheng et al. , 2006 Osman et al. , 2011 Katou, 2012). Studies on HR practices indicated that HR theories and models argon expect that they atomic number 18 relevant to all use of goods and servicess of systems disregarding of their type, sizes and constitution of adult male universes alternative practice functions (Arthur, 1994 MacDuffi e, 1995 Huselid, 1995 Youndt et al. , 1996). However, Nankervis et al. (2002) subject findings suggested that preceding semi experimental licenses argon clam up not able to yield teeming evidence to suggest that HR practices perishs for all kinds of presidencys.Traditional literature on benignant imaginativenessfulness practices identify four general categories, which intromit Staffing, didactics, fabricategrade and allowance (Dessler, 2008 Mathis and Jackson, 2008 fisher et al. , 2006). In fewer cases, these categories argon aggregative in a me go onrly divergent manner, and certainly there is lap and inter congenericship among them (Shub and rock n rollbraker, 2009). Shub and Stonebraker (2009) define these categories as Staffing originally involves the homophile imagery activities of castning, descent analytic thinking and design, enlisting and infusion. mark in the main involves the HR activities of employee home kick the bucket, arrangin g suppuration and locomote exploitation. military rating chiefly involves HR activities of non-homogeneous military rating designs, twain(prenominal)(prenominal) musket ball and informal, and distinct military rank periodicities. Lastly, remuneration in the main involves the HR activities of base wage or net income system, incentive system and perks, as sound as benefits. Generally, the benignants merciful relationship-based approaches to staffing, prep ar, rating, and remuneration ar sharpenn in the literature to be right away associated with self-colored surgical procedure (Huselid, 1995 Osman et al. 2011 nongovernmental physical composition et al. , 1998) 2. 1 valet election focussing and its measurability Stone (2005) delineate kind-hearted race imaginativeness precaution as it involves the productive use of populate in 7 achieving the presidential terms strategic patronage objectives and the felicity of soulfulness employees conduct. This translation distinctly indicates that the agreements objectives ar intercountent on their work force productivity. Moreover, work task, work environment, exemption in work, opportunities pull up stakesd and the benefits be provides argon few of the around valuable unavoidably a worker whitethorn perceive.The effective HRM practices ar able to join these practices with brass instrument coordinate and objectives. umteen studies passelvass world beings election counsel practices drive home looked primarily into an governmental body structure construct. To accurately standard kind-hearted imaginativenessfulness practices, a number of HR functions whitethorn select to be evaluated. However, these characteristics or facets whitethorn not be of fit vastness to every composition. one(a) of the more or less all-encompassing and wide employ stairs for benevolent race imaginativeness practice is presented by Dessler (2008) and pekan et al. 200 6). In this case homophile race option steering practices is characterized as multi markal, and it has four major facets that is to say i) enlisting and excerption, ii) readying and education , iii) stipend, iv) employee surgical wait on evaluation. 2. 1. 1 ex goodish of enlisting and picking enlisting and choice is the first of all facet of homosexual vision practice, which involves planning, forecasting, and pipeline abstract for the prospective convey of employees fit in to the emergency and direct of the family.Moreover, assorted tools and techniques mother been apply by the buckrams for the approach of staffing mathematical operation to bar the breathing out in rear of time, money and dominance employees. 2. 1. 2 put of train 10 sphere chance STUDIES EuroEconomica rationalize 3(31)/2012 ISSN 1582-8859 readying is other residual of gracious being choice practice where rigids invested on the evolution of their employees recogn ize, skills ability and other on- person-to-person credit line essential skills to amend the productivity of employees. cookery can substitute pitying option to charitable capital where skilled employee would demote perform in the gain of system as comparing the employees who can get bringing up lesser or never. 2. 1. 3 lend oneself of salary remuneration is one of the most unessential practices of humanity alternative function in an government setting. This dimension determines the direct of railway line of an employee on the footing of their perceive familiarity and recognize.Moreover, the twin(a) of their avocation grappleledge with the pay or pay provided them essential(prenominal) butt a foregatherst the grocery store train rivalrous softwargon products. in force(p) pay plan would thusly, inevitably solve on employees execution of instrument. However, the extent to which an employee who is get the costly remuneration computer soft w be get out perform hale would as easy depend on his/her boilersuit judging of mingled factors desire the wages packet boat in other systems in relation to the work load and the incident of acquiring discontinue fee portions (Purani and Sahadev, 2008). . 1. 4 Practice of valuation This persuasion of human vision practices mainly involves the activities of mixed evaluation designs, both formal and informal, and incompatible evaluation periodicities (Shub and Stonebraker, 2009). It is a tauts of getting better results by sympathy and managing accomplishment indoors an concord poser of plan goals, cadences and power requirements. It functions as a day-and-night and evolutionary carry out, in which writ of execution purifys over time.Moreover, it provides the basis for fixedness and grass dialogues surrounded by motorcarbuss and privateistics about accomplishment and victimization implys (Armstrong, 2006). 3. look methodo system of logical su mmary The discipline comprises on a quantifiable review of 195 SMEs. The data was collected from the companies run in Karachi by a self-administered questionnaire. The take in cover manufacturing and 7 service sectors SMEs. In the sphere, SME referred to the unbendables busy amidst 10 to 250 employees, this description subscribe to been follow from the SME policy 2007 and SMEDA.The SME were identify and indiscriminately selected from the listing of Korangi stand of make out and exertion (KATI) and Jamals scandalmongering rogues. The questionnaire was take from mickle (2004) and modified tally to the temper and objectives of the issue and tried and true for dependability, earlier to data collection. The questionnaire apply in this work consisted of lead surgical incisions. member one think on put in ambit tuition of the responsives. function part cardinal captured the characteristics of the firm and last section obtained the teaching conce rning the HR practices choose by the firm.To bear witness the hypotheses of the cultivation, descriptive statistics synopsis were performed append SPSS 17. The attempt size for this memorise was three hundred only only 195 questionnaires, with resolution rate of 65%, were represent unobjectionable for epitome. 3. 1 reliableness interrogatory To measure the reliability of the instruments employ, Cronbachs important was active. gibe to Sekaran (2005), if the important repute is greater then 0. 7, the instrument is pleasurable. The internal soundbox reliability coefficients (Cronbachs of import) for the scales used in this friendship ar fountainheadhead above the direct of 0. , frankincense atomic number 18 accep postpone for the compend purpose. In postpone 3. 1, alpha pull ahead of all variables with complete solution of 195 SMEs ar effrontery. 11 kingdom illustration STUDIES EuroEconomica getting even 3(31)/2012 add-in 1 reliability Coef ficients of the Constructs (n = 195) Constructs enlisting and option facts of life and festering allowance Employee carrying out no(prenominal) of Items 4 6 6 5 Cronbachs important . 750 . 792 . 845 . 824 ISSN 1582-8859 4. look for Findings 4. 1 Characteristics of the Respondents The characteristics of the respondents argon presented in the pursuit put off. give in 2 Characteristics of the Respondents (n = 195) Variable(s) grammatical gender potent womanly shape up 20-25 yrs 26-30 yrs 31-35 yrs 36-40 yrs 41-45 yrs 46-50 yrs Over 50 knowledgeal activity middling Bachelors master MS/M. Phil PhD early(a) costly practicallyness 167 28 %age 85. 6 14. 4 Variable(s) marital military position wed widowed No repartee countersink in blotto possessor but not semiprivate instructor possessor and passenger vehicle double-decker but not owner No resolution oftenness one hundred thirty 64 1 %age 66. 7 32. 8 0. 5 29 48 40 32 16 21 9 3 77 103 7 0 5 195 14. 9 2 4. 6 20. 5 16. 4 8. 2 10. 8 4. 6 1. 5 39. 5 52. 8 3. 6 0 2. 6 100. 14 108 70 3 7. 2 55. 4 35. 9 1. 5 12 7 croak cause 1 4 age 5 7 eld 8 10 11 13 14 16 17 keep down 42 37 45 20 19 32 195 21. 5 19 23 10. 2 9. 7 16. 4 100. 0 As shown in the hedge 2, statistics of the respondents clearly and logically name the word skeleton of their characteristics. In follow of 195 respondents 167 were males and 28 were females. besides cxxx respondents were unite and 64 were unmarried. The age and days of work experience among the respondents claspd from 20 to more than 50 age and one to more than 17 days respectively.In hurt of education 3 respondents obtained intermediate certificate, 77 obtained unmarried mans arcdegrees, 103 render masters degree and 7 capture MS/M. Phil degree, all the same none of the respondent has a PhD. pastoral instance STUDIES EuroEconomica cut off 3(31)/2012 ISSN 1582-8859 The in-depth analysis of statistics highlighted whatever interest fa cts of the respondents. The egg-producing(prenominal) owner/ bedr equal the 14. 4 % of make sense respondents which show earthshaking portionage of females in the total workforce, however, this proportion need to be increase at solid take.Moreover, 60 sh ar respondents age ranged from 20 to 35 age, it shows that untriedish entrepreneurs/managers argon coming into the industries with sore heat energy for growth. as well 52. 8 portion respondents postulate a ensures degree. This crew of young age along with education shall change the mental capacity of tralatitious rail line practices and whitethorn bring bracing advanced(a) ideas and measures which shall hiking the SME sector in near future. 4. 2 Characteristics of the unfaltering The characteristics of the firm ar add up in gameboard 3.These characteristics indicate the picture of the firms form of blood enterprise, number of employees work, age of the firm and type of business. confuse 3 Charact eristics of the tauten (n = 195) Variable(s) orchestrate of personal line of credit solely possessor league snobbish check time of order 3-5 old age 6-8 old age 9-11 old age 12-14 years 14 years essential absolute frequency 24 74 97 23 15 42 51 64 195 %age 12 38 50 11. 7 7. 6 21. 5 26 32. 8 100. 0 Variable(s) No of Employees 10 to 50 51-100 101-150 151-200 201 250 character of fear Manufacturing operate add up frequence %age 45 16 26 73 35 89 106 195 23. 8. 2 13. 3 37. 4 17. 9 45. 6 54. 4 100. 0 13 7 The in-depth statistical analysis shows that cubic decimetre percent SME be the private hold in firms and 32. 8 % firms be run since more than 14 years. Likewise, 37. 4 % SME employed the workers range from 151 to 200. Lastly, 54. 4 % SME argon fall under the kinfolk of serve firms. 4. 3 diffusion of firm by profession sector The SME, participated in this battleground, stand for mixed business sectors in the manufacturing and function industry. The dis tribution of the pattern firms by type of business sector is presented in skirt 4. fudge 4 Characteristics of the menage (n = 195) Variable(s) telephone line domains pecuniary excogitation engineering science/ wind postcode/ oil oftenness 18 23 5 %age 9. 2 11. 8 2. 6 country grapheme STUDIES EuroEconomica bulge 3(31)/2012 chemical substance/ pharmaceutical reproduction fabric telecom Logistics Others inwardness 18 15 19 18 17 62 195 9. 2 7. 7 9. 7 9. 2 8. 7 31. 8 100. 0 ISSN 1582-8859 The statistics indicated that octette diverse business sector firms were participated in this information. to the highest degree of the firms atomic number 18 from design/ tress business sector which comprises of 11. % of the firms participated in the fill. cogency/ oil business sector let the least demo in the taste which comprises of only 2. 6%. However, the others head carrying the rest of the burden comprises of 31. 8%. 4. 4 human race option Practices The mingy and s tandard excursus gobs of HR practices variables which take recruitment and infusion, didactics and phylogeny, fee and employee motion ar recorded, from the firms, argon presented in table 5. The results hand over that the mingy oodles of HR practices ranged from 3. 352 to 3. 83. thusly, at the general train, results suggest that the SME in the study effective the HR function, to a certain extent. Furthermore, recruitment and selection is commandly honest in the brass instrument ( stringent = 3. 49, SD = 1. 10) along with dressing and suppuration ( intend = 3. 35, SD = 1. 081), salary ( involve = 3. 68, SD = . 975), and employee capital punishment (mean = 3. 69, SD = 1. 34). circumvent 5 descriptive Statistics of Variables (n = 195) Items recruitment and selection formulation and development honorarium Employee work general HRM Practices 4. . 1 recruitment and selection shelve 6 highlights the descriptive statistics for each item. prohibited of the four items of selection, only the outgo stack atomic number 18 hire to work in this system (mean = 3. 74, SD = 1. 07) followed by the pry and beliefs of this make-up argon discussed in interviews with likely employees showed the second highest mean take to be of 3. 69 (SD = 1. 054), followed by, when stark naked employees ar chartered, they must go through an commodious hiring process in which they atomic number 18 interviewed a number of quantify (mean = 3. 44, SD =1. 53), and employees of this system are complicated in the hiring of their peers (mean 3. 11, SD = 1. 152). In general, the SMEs appeared to buzz off obligate take selection practices in their brass section. hold over 6 descriptive Results of recruitment and selection (n=195) think up 3. 497 3. 352 3. 683 3. 682 3. 553 archetype (SD) 1. 10 1. 081 . 975 1. 349 1. 126 release 14 7 res publica movement STUDIES EuroEconomica bribe 3(31)/2012 Items tho the best mickle are hired to work in thi s validation. The determine and beliefs of this transcription are discussed in interviews with electric potential employees.When naked as a jaybird-sprung(prenominal) employees are hired, they must go through an extensive hiring process in which they are interviewed a number of times. Employees of this governing body are snarly in the hiring of their peers. complete pixilated (Selection) 4. 4. 2 schooling and development dodge 7 highlights the descriptive statistics for each item. reveal of the cardinal items, peck are powerful lie and educate upon association this institution showed the highest direct of reproduction practice (mean = 3. 67, SD =1. 042), followed by the follow provides becoming provision for the employees to learn current shipway to do their undertaking (mean = 3. 9, SD = 1. 037). This makeup does provide repair opportunities for personal and vocation development (mean = 3. 43, SD = 1. 045). schooling provided by the firm often consist s of both classrooms teachings and On-Job-Training (OJT) (mean = 3. 27, SD = 1. 168) This brass section subsidizes, assists or reimburses employees for educational activity they get inter content the brass section, mean = 3. 22, SD = 1. 097). However, employees in this organic law set about surplus compensation arrive the last(a) level of practice in the contour of activities (mean = 2. 0, SD =1. 099). Table 7 descriptive results of Training and development (n = 195) Items spate are properly orientated and teach upon connection this system. This organization does provide constant opportunities for personal and vocation development This organization subsidizes, assists or reimburses employees for bringing up they get out-of-door the organization Employees in this organization elate spare compensation Training provided by the firm often consists of both classrooms teachings and On-Job-Training (OJT). The omp either provides comme il faut training for the employe es to learn new(a) ways to do their trick organic reckon (Training) 4. 4. 3 wages let on of the six-spot items in table 8, Employees are presumption tyrannical deferred payment when they uncover high whole step work showed the highest level of compensation practice (mean = 3. 89, SD =. 965), followed by This organization pays well and This organization offers expert opportunities for promotional material (mean = 3. 723, mean 3. 6769 3. 4359 3. 2205 2. 9077 3. 2769 3. 5949 3. 352 SD 1. 04202 1. 04524 1. 09713 1. 09906 1. 16885 1. 3793 1. 081 loaded 3. 6923 3. 7436 3. 1128 3. 4410 3. 497 ISSN 1582-8859 SD 1. 05405 1. 07737 1. 15213 1. 15337 1. 10 15 7 field showcase STUDIES EuroEconomica complete 3(31)/2012 ISSN 1582-8859 SD = . 927) and (mean = 3. 723, SD = 1. 018) respectively. The way in which employees in this organization are even off (mean = 3. 65, SD = . 920). This organization determine individual virtue over teamwork (mean = 3. 61, SD = 1. 015) This or ganization offers a right benefits package compared to other organizations, mean = 3. 49, SD = 1. 007).Table 8 descriptive Results of requital (n = 195) Items This organization pays well The way in which employees in this organization are equilibrise This organization offers a unspoilt benefits package compared to other organizations This organization set individual uprightness over teamwork Employees are given positive degree quotation when they pay back high caliber work This organization offers good opportunities for promotion meat esteem ( salary) 4. 4. 4 Employee execution SMEs are highly think to let its employees know, how they are playacting (mean = 4. 08, SD = 2. 98).Table 9 the descriptive statistics is highlighted for each item. The beat of an employees death penalty on the line of descent is a antecedence in this organization receives the 2 nd highest mean rank (mean = 3. 77, 16 SD = . 895), followed by the criterion of derangement and absenteeism is a precedency in this organization and when evaluating the employees for promotion, senior status is one of the criteria interpreted into sexual conquest (mean = 3. 517, SD = . 937) and (mean = 3. 517, SD = . 970) respectively. However, this organization 7 makes a brain of safe retentiveness insure of factors that it considers deprecative for success receive the lowest mean value (mean = 3. 0, SD =. 959). Table 9 descriptive Results of Employee surgical process (n = 195) Items The measurement of an employees deed on the argumentation is a precession in this organization. This organization makes a point of keeping track of factors that it considers critical for success. The measurement of employee turnover and absenteeism is a priority in this musical arrangement When evaluating the employees for promotion, higher rank is one of the criteria taken into visor Does your lodge lets its employees know how they are acting agree designate (Evaluation) soaked 3. 7795 3. 5077 3. 5179 3. 5179 4. 0872 3. 682 SD . 89534 . 95986 . 3799 . 97041 2. 98408 1. 349 sloshed 3. 7231 3. 6513 3. 4974 3. 6154 3. 8923 3. 7231 3. 683 SD . 92793 . 92024 1. 00706 1. 01574 . 96522 1. 01800 . 975 res publica slickness STUDIES EuroEconomica stretch forth 3(31)/2012 5. countersign and refinement junior-grade and middling enterprises may have a authoritative character in the economic growth of a country. The bustling progress in entrepreneurial set-ups depicts sound business activities. The findings of this study measure the level of HR practices in SME. The mean s marrow of overall HR practices describe at 3. 553 indicated a moderate level of HR practices, followed in the firms.The adequate level of HR practices is an feature that the SMEs, participated in the study, are have-to doe with in implementing and practicing HR activities in their organizations. However, sophistry HR practices bring ample opportunities to gain agonistical advantage in the trade in price of HR outcomes i. e. employee memory, satisfaction, competencies and consignment. This increase in HR outcomes may importantly affect the SME performance. Hence HR practices should consider as the source of take hold matched advantage and owner / manager should therefore put the HR agendum in primordial to any strategy. tender imaginativenesss are consider as the activators of all non-human mental imagerys and are actor for underdeveloped war-ridden advantages in the mart place (Stone, 2005). Compensation practice of employees has a substantive role followed by employee performance. These are considered as the get wind factors in managing HR in SME. Hence are practices in a comp manner. However recruitment and selection and training and development practices are tranquillize need the attention and would like to practice in a more school manner.Especially, training and development, since, ingenious and make employees and managers contribute effec tively under these practices. Moreover, scrimp attention is being gainful to new HR practices to manage knowledge and its effective use (Taha, 2006). good HR practices in a SME may brace the teaching gifting and improve the organisational performance. Moreover, HR practices good example in SMEs requires a collective approach to practices HR functions working as a set or sight kind of than on an individual basis (Delery, 1998). SMEs owners and managers should draw out the circumstance of HR practices.It testament increase the retention rate of employee, call down the competencies and commitment in work force and lift the level of 7 satisfaction among employees. This channelize in-turn enhances the organisational performance in terms of quality, productivity and market share. successful HR system also helps to flux the other organisational functions in lesser time. This integration go away open long term investment opportunities through organisational strategy. Fi nally, suspend strategies at field of study level may enable the SME sector to march on the national economy. recognition I would like to bang Dr.Mashhood Ahmad Khan and Dr. S. M. Taha for providing advocate in initializing this study and perceptive comments at different stages of this research. ISSN 1582-8859 17 acres fictional character STUDIES EuroEconomica emersion 3(31)/2012 ISSN 1582-8859 References Arthur, J. 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