Strategic HRM in Pakistan: A Comparison of Multinational and Local Approaches

Abstract

This research sets out to investigate strategic Human Resource Management (HRM) practices in Pakistan using a comparative approach between two types of organizations: a multinational subsidiary (Nestlé Pakistan) and a locally based firm (Engro Corporation). The study takes a qualitative, exploratory approach to examine the ways in which these entities are designing and implementing HRM systems in response to the complexities of Pakistan's cultural, legal, and economic landscape. The study is framed within the global-local HRM binary debate and recognizes that multinational corporations have schemes for HRM at a more global, "standardized" level and that local firms have systems of HRM embedded in indigenous societal norms as well as local and institutional contexts. Using a comparative case study approach, the research identifies ways both organizations converge and diverge in their HRM strategies. The core thematic areas evaluated were recruitment, training and development, appraisals, engagement, and cultural congruence. Overall results show that Nestlé uses global HR tools with adaptations for the local context and enters the country while staying focused on standardization with adaptability incorporated. Engro takes a totally different approach to developing HR practices by a firm set of practices, connecting with deep cultural integration, community involvement, and mentorship. Overall, it appears not only is there no best model for effective HRM in Pakistan there is no singularity but firms must develop hybrid ways of working where a balance is struck between global consistency and local responsiveness. This study has far-reaching implications for both international and local firms striving to improve HRM outcomes in contexts of cultural complexity and institutional fragmentation. Recommendations include: develop better cultural intelligence; develop hybrid HR framework; invest in some inclusive practice using HR frameworks; and leverage on digital