Understanding the impact of human resource practices on employee competencies: evidence from Indian food processing industry

Abstract

Purpose

The study aims at understanding the impact of individual and bundle of human resource practices (HRPs) on employee competencies. It also compares the impact of the bundle of HRPs with individual HRPs on employee competencies to examine the synergy effect.

Design/methodology/approach

To test the hypothesis, a sample of 229 respondents from the Indian food processing industry was taken. This included managerial and nonmanagerial personnel from four large scale food processing firms. The impact was analyzed through several structural equations.

Findings

The individual HRPs are positively related to employee competencies. Recruitment and selection have the least impact, and employee participation has the maximum impact on employee competencies. However, the bundle of HRPs has a positive and stronger impact on employee competencies than when they are studied individually.

Practical implications

The results of this study bring a wide array of managerial implications for the food processing industry. It recommends the management to adopt proper and well-structured HRPs for the food processing industry.

Originality/value

This is one of the few studies that utilizes resource-based view (RBV) and human capital theory (HCT) for investigating the relationship between HRPs and employee competencies in the Indian context. It attempts to increase the understanding regarding an important strategic HR concept (i.e. bundle of HRPs) on employee competencies.

Citation

Kaur, S. and Kaur, G. (2021), "Understanding the impact of human resource practices on employee competencies: evidence from Indian food processing industry", Employee Relations, Vol. 43 No. 5, pp. 957-978. https://doi.org/10.1108/ER-05-2020-0216