THE LINKAGE BETWEEN MANUFACTURING STRATEGIES AND STRATEGIC HUMAN RESOURCE MANAGEMENT PRACTICES IN MALAYSIA

Abstract

Rapid development and changes brought about by the global business environment should be accompanied by human resource management (HRM) practices which are progressive and forward looking to avoid failure for firms due to inability to properly manage their human capital. This study was undertaken in an attempt to identify which manufacturing strategies are significantly related to strategic HRM practices in Malaysia. This is based on the contingency theory which holds that certain HRM practices are implemented in accordance with type of competitive strategy adopted by the firms. The results of the study show that quality and flexibility based strategy is still a dominant concern for manufacturing firms. Through this study, the information gathered is useful for strategy formulation and how it leads to improved strategic HRM, specifically among Malaysian organizations and other parts of the world in general. Moreover the study is unique as it took place in a heterogeneous socio-political, cultural and economic environment.

JEL classification: L60, M12

Key words: Manufacturing Strategies, Human resource Management, Malaysia.