Human resource practices in the Informal Economy: A case study of Pakistan

Value of firm does not only depends upon its financial and material resources rather human resource is also a significant contributor in success of organizations by achieving competitive advantage. Human resource is an important asset so it is the main responsibility of employers to get best use of this resource. Hence, this paper will explore the human resource practices used by entrepreneurs in the informal economy in Lahore, provincial capital of Punjab, Pakistan. The rationale behind this study is to uncover the facts regarding management practices of human capital in the informal sector. Three major sectors are randomly selected. Snowball sampling technique was applied to collect data. Survey was conducted through interviews of 45 respondents working in the informal sector. The results show that informal sector in Pakistan is not using any formal human resource practices as done by formal enterprises. Findings suggest that there should be the implementation of the human resource practices that helps the firm to increase its productivity and ensure the betterment of the employees. The main limitation of study was short time period to cater all sectors of informal economy of Pakistan which limits the extent of its generalizability

Keywords:

Human resource practices , informal sector