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Background: This study aims to determine the impact of human resource management (HRM) practices on supply chain
management (SCM) in garment manufacturing firms.
Methods: This study found that garment manufacturing firms perform moderate level of HRM which have an impact on
Supply chain Management (SCM).There is a correlation between HRM practices that proactively contributes in supply
chain success. Training, an important HRM practise contributes greater to SCM success.
A two way approach was followed to collect Data which was from research papers and garment manufacturing firms.
A Questionnaire was prepared which was filled by middle level managers of garment industry in order to know their
perception as well as to understand the existing HRM practices which have or can have an impact on SCM.
Keywords: Human resource management, supply chain management, organization structure, competitive advantage,
SME.
2. HRM Practises
HRM practises are established by an organization, to support administrative personnel functions, performance
management, employee relations and resource planning. Each company has a different set of circumstances, and so develops an
individual set of human resource policies.
These policies, when organized and disseminated in an easily used form, can serve to pre-empt many misunderstandings between
employees and employers about their rights and obligations in the business place. It is tempting, as a new small business owner, to
focus on the concerns of the business at hand, and put off the task of writing up a human resource policy. Having policies written is
important so that it is clear to all what the policies are and that they are applied consistently and fairly across the organization.
Moreover, when issues concerning employee rights and company policies come before federal and state courts, it is standard practice
to assume that the company's human resource policies, whether written or verbal, are a part of an employment contract between the
employee and the company. Without clearly written policies, the company is at a disadvantage.
Objective: To study the relationship of HRM practices and supply chain in apparel Industry in Delhi/NCR
5. Methodology Adopted
For Secondary Data, various research papers and articles on HR Policies, SCM and their examples understanding the
barriers in application of various HR policies and its impact on Organisation were considered.
Furthermore, for Primary data, a questionnaire on factors influencing the HR policies and its impact on garment manufacturing was
developed. This helps in identification of present scenario, complete process involved in SCM and analysis of responses received
from customers as well as garment manufacturing firms.
54 % of employees accepted that efforts are being made to generate awareness amongst the employees about the
organization’s financial position, customer’s needs, and quality of product/service, cost etc.
0%
15%
54%
31%
38 % of people consider that there are distinct career paths and internal promotion norms within the organization.
8%
15%
39%
38%
38% of people believed that the organization utilizes the assessment centre/development centre for identification and
development of management potential.
30% of people believed that the organization has provision for employee recognition programmes and awards.
30 % of people think that HR policies provide a sense of understanding and proper functioning of supply chain
management.
62% of the people don’t agree that the organization has a wide network of computerized human resource information
system with the latest software.
8%
8%
23%
61%
68% of employees felt that training on understanding of various production activities as the merchandiser provided an
interface between the buyer and the company.
70% of employees believed that training imparted in soft skills like negotiation and communication skills was significant
for export oriented units.
85% of employees felt that knowledge of foreign languages helps better co-ordination with the buyer.
0%
15%
0%
85%
8% 0%
15%
77%
7. Conclusion
The research showed the impact of HRM practices on effective supply chain management. The study concluded that SCM
methodologies can enhance intra-firm HRM, for example, the bull-whip effect (small changes in consumer demand are magnified
across the supply chain) can apply to long term personnel planning. Organizational culture impacts supply chain integration,
integration practices in the supply chain act as a mediating link between culture and performance. Some HRM practices have a
positive effect on building intra firm SCM relationships while some have a negative effect.
Intra organizational divides can be as strong as, if not stronger than, inter firm divisions, therefore HR practices are important in
both settings. Internal supply chains provide greater opportunities for top management to control and extract value from the supply
chain, compared to supply chains consisting of separate organizations.
HRM practices enable the proper functioning of Supply Chain and ensure that employees are treated fairly, managed well, appraised
effectively and rewarded financially and non-financially.
HRM helps specific tasks and performance parameters for various levels and functions of employees based on their education,
experience, and designations Just like an SCM function is responsible for sourcing and bringing raw material in. So, also the HR
team is expected to help the business bring in the talent and staffing required to run the business appropriately.
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