Local companies underperform: a comparative study of industries in Pakistan

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Afaq Kazi
Seema Chandani


The capacity of the organization to produce high-quality products at the lowest cost with the fast pace of delivery of goods and services has the potential to determine the survival, sustainability, and growth of organizations in emerging globalization and competition. The researcher has critically examined the impact of people's development, employee welfare, leadership effectiveness, and Human Resources operations effectiveness in the context of local, Multinational Companies, and public sector organizations operating in Pakistan. This research has also considered previous studies. The study results show that the sustainability and growth of organizations depend on how engaged and motivated employees the companies have to be to achieve organizational goals. MNCs invest in best talent acquisition and development, take care of employee welfare, and consistently improve the system thus sustain and grow. It was discovered that the local companies still could not shift from ownership to corporate culture and leading by "Seth" (entrepreneur mindset) lacking professional approaches. The local organizations are penny-wise, by compromising on capacity building of people, employee welfare, leadership development, and implying an efficient system. Unlike MNCs, 'Seth' companies operate with low capacity employees, disengaged workforce, ineffective leadership, and obsolete systems and suffer huge hidden productivity and efficiency losses that are never surfaced and monitored. The data of this research was generated based on information provided by HR heads of 15 MNCs, local and public sector companies. HR experts were interviewed in focused groups and through questionnaires.


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