The Effects Of Human Resource Practices On Labor Productivity: A Case Of Selected Industrial Estates In Sri Lanka

Abstract

Productivity is a widely considered concept in overall analysis of industrial success. In order to achieve organizational goals and enhance organizational productivity, flexible and capable employees play a crucial role. Further, it is extensively accepted that labor productivity is likely to be the outcomes of creative HRM strategies. In that background, the objective of this study is to examine the effects of HRM practices on Labor productivity. To achieve the objective, the study focused on HRM practices and its outcomes by measuring its contribution to overall organizational productivity. The study was conducted with randomly selected manufacturing firms which are located at eight (8) large industrial estates representing three (3) provinces in Sri Lanka. The data were gathered through a sample survey via a structured questionnaire. The correlation analysis of the data showed that out of nine (9) selected HRM practices, six (6) of them were significantly correlated with the labor productivity and three (3) of them were showing weaker correlation with the labor productivity.