Human Resource Management Practices and Operational Performance: Evidence from Manufacturing Firms in An Emerging Economy

Abstract

This study examines the relationship between human resource management practices and operational performance in manufacturing firms operating in an emerging economy. Drawing on the resource-based view, the study conceptualizes human resource management practices as a bundle of recruitment and selection, training and development, and performance appraisal, and evaluates their combined and individual effects on operational performance. Primary data were collected through structured questionnaires administered to managers in manufacturing firms, and the hypotheses were tested using hierarchical regression analysis. The findings reveal that recruitment and selection as well as performance appraisal practices have a positive and statistically significant influence on operational performance, while training and development does not show a significant effect when examined alongside other practices. The results underscore the strategic importance of aligning HRM practices with organizational objectives to enhance non-financial performance outcomes such as product quality, delivery speed, customer responsiveness, and service reliability. The study contributes to the HRM literature by providing empirical evidence from an emerging economy context and offers practical insights for managers seeking to improve operational performance through effective human resource management.