This thesis analyses the changes in pay structures and systems in the banking sector of Pakistan within a wider organisational setting of changes in multiple HR practices. It examines the outcome of these changes as perceived by different employee workgroups in the milieu of their new set of expectations. The existing literature on pay and its influence on the employee psychological contract is mostly limited to studies in the Anglo-Saxon countries. It fails to adequately highlight the ensuing conflicts of institutionalizing HRM practices which may be considered socially legitimate in western societies, in a South Asian country. While the importance of employee involvement in the design and implementation of pay practices is established in the literature there have been few studies which link the implications of its absence with employee perceptions. Moreover, the limited emphasis on the implications and consequences of applying a differentiated HR architecture within organisations fails to recognize the complex and at times conflicting relationship between different HR practices and the associated impact on multiple employee workgroups. To address these gaps in literature a qualitative case study approach was employed and interviews were conducted with 94 employees and HR managers in six domestic banks in Pakistan. The analysis reveals the policies of deregulation and privatization as the key driver for changes in the pay practice which include a partial shift from seniority to performance based pay systems, adoption of broadband pay structures and discontinuation of defined pension benefits. The other HR practices varied only slightly in design features and were applied inconsistently across the differentiated employee workgroups indicating more investment in some than others and resulting in pronounced conflicts between them. The results suggest that interrogation of outcomes of changes in bundles of HR practices, framed by an organisation’s HR architecture requires a multi-level study which incorporates the perspectives of both the employers and the employees.

Midst contextual themes of new technologies and globalisation, South African organisations are challenged to attract, develop and retain suitable skills in a labour market that will continue to suffer shortages. The HR function of today is required to partner with organisations at a strategic level in response to this challenge. Successful organisations understand that transforming the HR function require regular in-depth analyses of its effectiveness. The study aimed to assess the effectiveness of an HR function operating in a public utility, against current trends in HR transition. Different evaluation methodologies are explored to develop a theoretical evaluation model for the effectiveness of a HR function. The results confirmed that the HR function is not effective in its role as strategic partner, and highlights significant differences in perception between the stakeholders and the HR function regarding its effectiveness. Recommendations were made on future transformation actions for the specific HR function. / Industrial & Organisational Psychology / M.A. (Industrial Psychology)

Midst contextual themes of new technologies and globalisation, South African organisations are challenged to attract, develop and retain suitable skills in a labour market that will continue to suffer shortages. The HR function of today is required to partner with organisations at a strategic level in response to this challenge. Successful organisations understand that transforming the HR function require regular in-depth analyses of its effectiveness. The study aimed to assess the effectiveness of an HR function operating in a public utility, against current trends in HR transition. Different evaluation methodologies are explored to develop a theoretical evaluation model for the effectiveness of a HR function. The results confirmed that the HR function is not effective in its role as strategic partner, and highlights significant differences in perception between the stakeholders and the HR function regarding its effectiveness. Recommendations were made on future transformation actions for the specific HR function. / Industrial and Organisational Psychology / M.A. (Industrial Psychology)