Authors : Thomas J. Menachery and Chandrashekhar Pandey
Abstract: The study examines the relationship between strategic HRM practices and organisational performance in the Indian manufacturing sector adopting the best practices or universalistic approach. The guiding assumptions of strategic HRM imply a universalistic approach. But studies done from the contingency and configurational perspectives suggest that these assumptions may be unjustified. Furthermore, most empirical studies have been conducted in a United States or United Kingdom context, leaving perhaps a national bias. Therefore, in this study data from India are presented to test whether the basic strategic HRM model holds. To explore the black box mediating between human resource management practices and performance, it is hypothesized that HRM outcomes mediate the relationship between strategic HRM practices and organisational performance. Data were collected through a questionnaire survey from a sample of companies based in the city of Chennai, drawn from different sectors of the manufacturing sector. The strategic HRM variables are found to have a positive effect on both HRM outcomes and organisational performance and HRM outcomes partially mediate the relationship between strategic HRM practices and organisational performance. Training and internal career opportunities are strategic HRM practices that affect both HRM outcomes and organisational performance.
Thomas J. Menachery and Chandrashekhar Pandey, 2018. Strategic Human Resource Management Practices and Organisational Performance in Indian Manufacturing Companies. International Business Management, 12: 117-125.