Study of HR practices and its’ impact on labor productivity: Katunayake Export Processing Zone apparel industry
No Thumbnail Available
Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Uva Wellassa University of Sri Lanka
Abstract
Human Resource has become a valuable and significant asset for business organization due to
its specific capability of guiding them towards achieving common goals. Moreover, Human
Resources (HR) often account for a large part of an organization’s cost structure. Therefore,
organizations should provide considerable attention on their human resources. The success of an
organization mainly depends on its labor productivity. It is concerned as a vital part of an
organization. The concept of productivity is related to manufacturing and services with
reference to tangible and intangible inputs and outputs (Adam & Ebert, 1992). Productivity is
referred to as the improvement in the quantity and quality of goods and services and the
effectiveness of the system and optimization of the output through increased efficiency or
minimizing the use of resources (Duckering, 2001). Human Resource Management (HRM) is
known as the central business concern that shapes the behavior, attitudes and performance of the
employees, hence, HR practices are important tools for organizational performance.
Apparel industry is the highest labor utilization sector in Sri Lanka (Chathurika et al at 2013).
Shortage of skilled labor available to the industry is another factor adversely affecting
productivity. Consequently, it is more difficult to use the existing labor in the most efficient
manner; and as the supply of labor is less than the demand leads to low productivity in results. It
is often pointed out that labor productivity in Sri Lanka is low compared with that in other
garment-exporting countries (Kelegama & Eparachchi, 2002). It is very much important to
match people with the organization and the job to achieve the expected level of productivity.
Employers should aware about the dynamic and changing environment of the employees.
Managers should highly focus on labors’ productivity, because the success of the organization
depends on the hands of the employees.
Main objective of the research was to identify the relationship of the HR practices dimension
that influence to the labor productivity of Apparel sector in Sri Lanka. Other objectives were to
identify the Labor Productivity measurement & dimensions, identify the impact of the HR
practices dimensions on Labor Productivity and identify the most and least important HR
practices that influence to Labor Productivity in Apparel sector. Independent variable has been
used the parameters of Recruitment and selection, Training and development, Performance
evaluation, Promotion practice, Compensation & benefits & Grievances handling system and
dependent variable has been used the parameters of Motivation level of work force, Awareness
of optimal productivity level, Labor turnover and absenteeism, Level of technology, Lead time
& Labor relations to measure the labor productivity.
Methodology
Use stratified sampling technique by using probability proportion to the population. The
population was Katunayake Export Processing Zone (KEPZ). The survey was conducted being
based on a sample of 150 operational level employees in garment factories in KEPZ. Sample
unit was one operational level employee. Further self- administered questionnaire was used to
gather information from the sample. Questionnaire was based on five point Likert scale. Both
descriptive and inferential techniques were used to analyze data. Descriptive statistic
techniques were used to measure and summarize the attributes of the sample. Furthermore,
Correlation coefficient analysis was used to measure the degree of linear association between
two variables and identify the most and least important HR practices that influence to the labor
productivity. Multiple regression analysis was also used to combine contribution of
Recruitment and selection, Training and development, Performance Evaluation, Promotion
Practice, Compensation & Benefits & Grievances Handling System.
Description
Keywords
Apparel Industry in Sri Lanka, Apparel Industry, Management, Human Resource Management, Entrepreneurship and management