Human Resource Management and Economic Practices in Business Enterprises in Pakistan

Abstract

This study explores the interplay between Human Resource Management (HRM) practices and economic strategies within Pakistani business enterprises. HRM has emerged as a key determinant of organizational performance, influencing productivity, employee satisfaction, and profitability. The economic landscape of Pakistan presents unique challenges, such as fluctuating inflation rates, policy instability, and skill shortages, which necessitate efficient HRM practices.This research employs a mixed-method quantitative approach to analyze the relationship between HRM strategies and business success, using primary survey data from 200 business firms across various industries. The study incorporates regression analysis and structural equation modeling to determine the impact of HRM policies, including recruitment, training, compensation, and employee retention, on economic performance indicators such as revenue growth, profitability, and employee turnover.Findings suggest a strong correlation between effective HRM and economic sustainability. Businesses that invest in structured HRM frameworks tend to experience higher workforce productivity and financial stability. The study recommends policy interventions to enhance HR practices, emphasizing skill development and data-driven decision-making