This study explores the antecedents and complexities of values of employees and organizations in Pakistan where, following a decade of deregulation and increased globalization, a striking change has surfaced in the value system. Khilji’s study has revealed that at least two distinct dimensions of values have emerged: national values remain rooted in tradition, while employees’ work-related values reveal changes reflecting a modern market economy. Taking a lead from this study, a total of 100 interviews and 303 questionnaires from six organizations are used to investigate the process and outcome of revamping HR systems in order to develop a new organizational culture. Findings validate that a younger cohort of employees, in particular, has experienced a transition in their value system; and that they expect a different set of HR practices. Organizations that are responsive to these changes appear to achieve greater HR satisfaction. It is suggested that senior managers should re-assess values of their employees and play a more committed role in developing new HR systems.
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