Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

HRM‐market performance relationship: evidence from Bangladeshi organizations

HRM‐market performance relationship: evidence from Bangladeshi organizations Purpose – The purpose of this paper is to examine the impact of human resource management (HRM) practices on the market performance of manufacturing industries in Bangladesh. As one of the pioneer studies, it is hoped that this research will convince organizations that by adopting systematic and efficient HRM practices, they will achieve competitive advantages. Design/methodology/approach – A quantitative survey was used to gather data from publicly listed, large manufacturing companies in Bangladesh. Modified questionnaires were used to measure the adoption of HRM practices and the perceived market performance of the organizations. The statistical programme, SPSS, was used to analyse and interpret the results. Findings – The study revealed that HRM practices have a positive impact on organizations’ market performance. However, among different HRM practices, the performance appraisal seems to have the highest impact. Among the others, employee training and development, and the compensation practices were shown to have higher positive impacts than recruitment and selection practices. Practical implications – The paper concludes that in order to improve their competitiveness and gain competitive advantages, business organizations in Bangladesh need to adopt systematic HRM practices. The paper's findings will encourage the next generation of business entrepreneurs to develop systematic HRM practices and corporate management culture in Bangladesh. Originality/value – The paper validates the effectiveness of the US and European developed HRM practices in an Eastern developing country context. This is one of the pioneer studies which followed methodological rigor to validate the much discussed HRM‐performance relationship in Bangladesh. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png South Asian Journal of Global Business Research Emerald Publishing

HRM‐market performance relationship: evidence from Bangladeshi organizations

Download PDF
18 pages

Loading next page...
 
/lp/emerald-publishing/hrm-market-performance-relationship-evidence-from-bangladeshi-QL2TJlEo65
Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
2045-4457
DOI
10.1108/20454451211252750
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to examine the impact of human resource management (HRM) practices on the market performance of manufacturing industries in Bangladesh. As one of the pioneer studies, it is hoped that this research will convince organizations that by adopting systematic and efficient HRM practices, they will achieve competitive advantages. Design/methodology/approach – A quantitative survey was used to gather data from publicly listed, large manufacturing companies in Bangladesh. Modified questionnaires were used to measure the adoption of HRM practices and the perceived market performance of the organizations. The statistical programme, SPSS, was used to analyse and interpret the results. Findings – The study revealed that HRM practices have a positive impact on organizations’ market performance. However, among different HRM practices, the performance appraisal seems to have the highest impact. Among the others, employee training and development, and the compensation practices were shown to have higher positive impacts than recruitment and selection practices. Practical implications – The paper concludes that in order to improve their competitiveness and gain competitive advantages, business organizations in Bangladesh need to adopt systematic HRM practices. The paper's findings will encourage the next generation of business entrepreneurs to develop systematic HRM practices and corporate management culture in Bangladesh. Originality/value – The paper validates the effectiveness of the US and European developed HRM practices in an Eastern developing country context. This is one of the pioneer studies which followed methodological rigor to validate the much discussed HRM‐performance relationship in Bangladesh.

Journal

South Asian Journal of Global Business Research – Emerald Publishing

Published: Aug 17, 2012

Keywords: Bangladesh; Manufacturing industries; Human resource management; Developing countries; Market performance

References

  • Cultural factors in workforce management: the case of multinational companies operating in Bangladesh
    Abdullah, A.; Boyle, S.; Joham, C.
  • Recruitment and selection practices in manufacturing firms in Bangladesh
    Absar, M.
  • Economic development, business strategy and corporate restructuring in India
    Aggarwal, R.
  • Addressing workers’ rights in textile and apparel industries: consequences for Bangladesh economy
    Ahmed, N.; Peerlings, J.
  • Human Resource Management: Text and Cases
    Aswathappa, K.
  • Devolution of HRM and organizational performance: evidence from India
    Azmi, F.
  • Organizational and HRM strategies in Korea: impact on firm performance in an emerging economy
    Bae, J.; Lawler, J.
  • On becoming a strategic partner: the role of human resources in gaining competitive advantage
    Barney, J.; Wright, P.
  • Good morning Vietnam: new challenges for HRM
    Bartram, T.; Stanton, P.; Thomas, K.
  • Managing customer services: human resources practices, quit rates and sales growth
    Batt, R.
  • High performance work systems and firm performance: a synthesis of research and managerial implications
    Becker, B.; Huselid, M.
  • Managing Human Assets
    Beer, M.; Spector, B.; Lawrence, P.; Mills, D.; Walton, R.
  • High involvement work practices that really count: perspectives from UAE
    Behery, M.
  • The view of corporate managers on the current state of and future prospect for social reporting in Bangladesh
    Belal, A.; Owen, D.
  • When in Rome….? Human resource management and the performance of foreign firms operating in India
    Bjorkman, I.; Budhwar, P.
  • Commonalities and contradictions in HRM and performance research
    Boselie, P.; Dietz, G.; Boon, C.
  • Asian management research: status today and future outlook
    Bruton, G.; Lau, C.
  • Managing Human Resources in Asia Pacific
    Budhwar, P.
  • Future research on human resource management systems in Asian
    Budhwar, P.; Debrah, Y.
  • The impact of HRM practices on organizational performance in the Indian hotel industry
    Chand, M.; Katou, A.
  • Work orientation as an element of national culture and its impact on HRM policy‐practice design process: lessons from Sri Lanka
    Chandrakumara, A.; Sparrow, P.
  • CSE listed companies
    Chittagong Stock Exchange (CSE)
  • Societal institutions and HRM practices: an analysis of four European multinationals in Bangladesh
    Chowdhury, S.; Mahmood, M.
  • How much do high‐performance work systems matter? A meta‐analysis of their effects on organizational performance
    Combs, C.; Liu, Y.; Hall, A.; Ketchen, D.
  • The impact of human resource management practices on perceptions of organizational performance
    Delaney, J.T.; Huselid, M.A.
  • Human Resource Management
    Dessler, G.
  • Compensation research: past, present and future
    Dulebohn, J.; Werling, S.
  • Inside the black box and HRM
    Edgar, F.; Geare, A.
  • Corporate governance in Bangladesh: link between ownership and financial performance
    Farooque, O.; Zijl, T.; Dunstan, K.; Karim, A.
  • Firm productivity in Bangladesh manufacturing industries
    Fernandes, A.
  • Solider quality and job performance in team tasks
    Fernandez, C.J.
  • Opening the black box of the relationship between HRM practices and firm performance: a comparison of MNE subsidiaries in the USA, Finland and Russia
    Fey, C.; Yakushev, S.; Park, H.; Bjorkman, I.
  • Strategic Human Resource Management
    Fomburn, C.J.; Tichy, N.M.; Devanna, M.A.
  • HRM and firm performance: measurement issues and their effect on causal and policy inferences
    Gerhart, B.
  • Employee compensation: research and practices
    Gerhart, B.; Milkovich, G.
  • Employee reactions to human resource management and performance in a developing country: evidence from Eritrea
    Ghebregiorgis, F.; Karsten, L.
  • SBU strategy and performance: the moderating effects of the corporate‐SBU relationship
    Golden, B.
  • National embeddedness and HRM in US subsidiaries in Europe and Australia
    Gooderham, P.; Nordhaug, O.; Ringdal, K.
  • Bangladesh Economic Review
    (The) Government of Bangladesh (GOB)
  • Human resource management and industrial relations
    Guest, D.
  • Human resource management and performance: a review and a research agenda
    Guest, D.
  • Human resource management and performance: still searching for some answers
    Guest, D.
  • Strategic integration and employee relations: the impact of managerial styles
    Gunnigle, P.; Turner, T.; Morley, M.
  • Human resource management as competitive as in the new millennium: an Indonesian perspective
    Habir, A.; Larasati, A.
  • Accountability and governance: strengthening extra‐bureaucratic mechanisms in Bangladesh
    Haque, A.
  • Pattern of strategic change in the development of human resource management
    Hendry, C.; Pettigrew, A.
  • Are HR practices of effective firms distinctly different from those of poorly performing ones
    Huang, T.
  • Ability tests: economic benefits versus the issue of fairness
    Hunter, E.; Schmidt, L.
  • The impact of human resource management practices on turnover, productivity and corporate financial performance
    Huselid, M.
  • Methodological issues in cross‐sectional and panel estimates of the HR‐firm performance link
    Huselid, M.A.; Becker, B.E.
  • The seven hottest emerging markets
    Investors Chronicle
  • Motivation for an organization within a developing country to report social responsibility information: evidence from Bangladesh
    Islam, A.; Deegan, C.
  • The determinants of stock option compensation: evidence from Finland
    Jones, D.; Kalmi, P.; Makinen, M.
  • The effects of human resource management policies on organizational performance in Greek manufacturing firms
    Katou, A.; Budwar, P.
  • Casual relationship between HRM policies and organizational performance: evidence from the Greek manufacturing sector
    Katou, A.; Budhwar, P.
  • Human resource management: an Islamic perspective
    Khan, B.; Farooq, A.; Hussain, Z.
  • A study of strategic HR issues in an Asian context
    Khatri, N.; Budhwar, P.
  • HR and IT capabilities and complementarities in knowledge‐intensive services
    Khatri, N.; Baveja, A.; Agrawal, N.; Brown, G.
  • Does south Asia matter? Rethinking south asia as relevant in international business research
    Khilji, S.
  • ‘Intended’ and ‘Implemented’ HRM: the missing linchpin in strategic human resource management research
    Khilji, S.; Wang, X.
  • Strategic global human resource management research in the twenty‐first century: an endorsement of the mixed‐method research methodology
    Kiessling, T.; Harvey, M.
  • Impact of human resource management: SME performance in Vietnam
    King‐Kauanui, S.; Ngoc, S.; Ashley‐Cotleur, C.
  • Broad based incentive plans, HR practices and company performance
    Kroumova, M.; Lazarova, M.
  • HRM and company performance: the use of measurement and the influence of economic cycle
    Lahteenmaki, S.; Vanhala, S.
  • High‐Involvement Management
    Lawler, J.
  • Training and development in Bangladesh
    Mahmood, M.; Akhter, S.
  • Spending on human resource development: the scenario in the pharmaceutical industries
    Mamun, M.A.
  • Linking HRM and performance: a never ending search?
    Marchington, M.; Zagelmeyer, S.
  • Performing for pay? The effects of merit pay on motivation in public services
    Marsden, D.; Richardson, R.
  • Compensation
    Milkovich, G.; Newman, J.
  • HRM practices and organizational performance in Oman
    Moideenkutty, U.; Lamki, A.; Murthy, Y.
  • Human resource management practices in a transition economy: challenges and prospects
    Okpara, J.; Wynn, P.
  • HRM and performance: achievements, methodological issues and prospects
    Paauwe, J.
  • HR practices or HR capabilities: which matters? Insights from the Asia Pacific region
    Park, H.; Gardner, T.; Wright, P.
  • Performance‐related pay and firm performance in Finland
    Piekkola, H.
  • Competitive Advantage Through People: Unleashing the Power of the Workforce
    Pfeffer, J.
  • HR strategy delivers industry‐leading performance at Mitchellls & Butlers
    Phillips, L.
  • Emergence of the human capital resource: a multi‐level model
    Polyhart, R.; Moliterno, T.
  • Best practice and best fit: chimera or cul de sac?
    Purcell, J.
  • The practice of strategy
    Reilly, P.
  • Bangladesh economy: surrounded by deadly threats
    Salman, A.
  • New public management in developing countries: an analysis of success and failure with particular reference to Singapore and Bangladesh
    Sarker, A.
  • Personnel and Human Resource Management
    Schuler, R.
  • Gaining competitive advantage through human resource management practices
    Schuler, R.; MacMillan, I.
  • Development of corporate governance regulations: the case of an emerging economy
    Siddiqui, J.
  • Effect of human resource management practices on firm performance in India
    Singh, K.
  • Impact of HR practices on perceived firm performance in India
    Singh, K.
  • Innovative human resource management and corporate performance in the context of economic liberalization in India
    Som, A.
  • Toward a theory of comparative management research: An idiographic case study of the best international human resources management project
    Teagarden, M.; Von Glinow, M.; Bowen, D.; Frayne, C.; Nason, S.; Huo, Y.; Milliman, J.; Arias, M.; Butler, C.; Geringer, J.; Kim, N.; Scullion, H.; Lowe, K.; Drost, E.
  • Antecedents and consequences of dimensions of human resource management practices in Vietnam
    Thang, L.; Quang, T.
  • What we know about relationship between training and firm performance: a review of literature
    Thang, N.N.; Buyens, D.
  • Management capability and high performance work organization
    Thompson, M.; Heron, P.
  • Organization and management in the midst of societal transformation: the people's republic of China
    Tsui, A.; Schoonhoven, C.; Meyer, M.; Lau, C.; Milkovich, G.
  • The relationship between trust, HRM practices and firm performance
    Tzafrir, S.
  • A universalistic perspective for explaining the relationship between HRM practices and firm performance at different points in time
    Tzafrir, S.
  • Rationalism, traditionalism and the state of corporate governance mechanisms: illustrations from a less‐developed country
    Uddin, A.; Choudhury, J.
  • Measuring human resources: an overview of practices and a prescription for results
    Ulrich, D.
  • Measurement of business performance in strategy research: a comparison of approaches
    Venkatraman, N.; Ramanujam, V.
  • Predicting business unit performance using employee surveys: monitoring HRM‐related changes
    Voorde, K.; Paauwe, J.; Veldhoven, M.
  • From ‘control’ to ‘commitment’ in the workplace
    Walton, R.
  • High performance works systems and intermediate indicators of firm performance within the US small business sector
    Way, S.
  • The impact to market orientation and strategic HRM on firm performance: the case of Chinese enterprises
    Wei, L.; Lau, C.
  • Pay for performance in China's non‐public sector enterprises
    Wei, Q.; Rowley, C.
  • Human resource management and performance
    Wood, S.
  • Exploring human capital: putting human back into strategic human resource management
    Wright, P.; McMahan, G.
  • The relationship between HR practices and firm performance: examining casual order
    Wright, P.; Gardner, M.; Moynihan, L.; Allen, M.