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Strategic Human Resource Management Practices and Competitive Priorities of the Manufacturing Performance in Karachi

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Abstract

Pakistan is a developing country with scarcity of HRM research. An ineffective and maladaptation of strategic HRM practices potentially reduce the manufacturing performance in Karachi. This study investigates the impact of eight strategic human resource management practices on the four competitive priorities (i.e., cost, quality, delivery and flexibility) of the manufacturing performance when controlled for information sharing and relationship with employees. A sample of 182 usable survey questionnaires is collected from 90 organizations of 15 manufacturing sectors based in Karachi. The method of exploratory and confirmatory factor analyses were used to assess the reliability and validity of the measurement model. The structural equation modeling method was then applied to examine the theoretical framework. The results of the structural model show that all of the eight strategic HRM practices collectively demonstrate a very good model fit between the theory and the sample drawn however, both performance appraisal and employment security have been found statistically significant to predict these four priorities in isolation too. The study validates the theory of the integration between HRM practices and manufacturing operations, and investment perspective of strategic HRM, in particular. The contribution of this study is the construction of structural and measurement models of strategic HRM practices and the four chosen competitive priorities that could facilitate future research on human resource management. It also highlights important implications for HR managers in developing countries such as Pakistan.

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Acknowledgments

The author wishes to thank Prof. Stephen Procter (Alcan Chair of Management, Head of HRM, Work and Employment Subject Group, Newcastle University, UK) and Prof. Mahfooz A. Ansari (University of Lethbridge, Canada) for their expert opinions. Moreover, the author also wishes to thank Dr. Imran Khan (Assistant Professor, Research and Graduate Studies, Faculty of Education and Learning Sciences, IQRA University, Karachi), Dr. M. Azam (Associate Dean, Department of Management Sciences, IQRA University, Karachi), and Mr. Muhammad Muzammil Ghayas (PhD Scholar) for their useful comments and assistance in producing the initial draft of the manuscript.

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  1. Department of Management Sciences, IQRA University, Karachi, 75300, Pakistan

    Muhammad Shahnawaz Adil

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Appendices

Appendix I

Table 5 Construct measurement summary: CFA and composite reliability
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Appendix II

Table 6 Construct measurement summary: CFA and composite reliability
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Shahnawaz Adil, M. Strategic Human Resource Management Practices and Competitive Priorities of the Manufacturing Performance in Karachi. Glob J Flex Syst Manag 16, 37–61 (2015). https://doi.org/10.1007/s40171-014-0084-7

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