Perceptual asymmetries in perceived quality ofHRfunction resulting from ownership transformation: A public‐to‐private scenario

Abstract

Policymakers use privatization to transform a drowning public sector firm into a profitable institution while ignoring its effects on different organizational members. This study advances HR research on ownership transformation and its human resource implications by exploring potential effects of privatization on changes in perceptions of key HR service providers and service receives (i.e., HR and Non‐HR line managers) about the quality of HR business partnership role. This qualitative investigation is based on in‐depth semi‐structured interviews with eight Non‐HR and three HR line managers of a privatized fertilizer company in Pakistan. We proposed that the transformation of ownership positively affects the line manager's perceptions about strategic partner and change agent role of the HR Function. The line managers' perceptions about the expert administrative role remained almost unaffected, while their perceptions about employee champion role of HR Function are negatively affected after privatization. This study has contributed to the existing knowledge by highlighting the role of ownership transformation, particularly privatization in employees' perceptions about the business partner role of HR Function in a fertilizer firm.