Do primary HR functions model work in emerging economies? Sustainable compact perspective for Bangladeshi RMG industry

Abstract

Purpose The International Labour Organization’s (ILO) sustainable compact is evident for many labor-intensive industries in emerging economies. This study aims to develop a sustainable human resource (HR) practice model for a labor-intensive industry from the evidence of the Bangladeshi ready-made garments (RMG) sector. Design/methodology/approach The study tests the factors identified from the literature for model validation. A total of 22 HR function items were used in a survey of 800 randomly selected respondents from the RMG sector in Bangladesh. The factor analysis (both exploratory and confirmatory) techniques were applied to explore and validate the model. Findings The study findings reveal that the factory management and policymakers should focus on sustainable HR practices for the betterment of a labor-intensive industry. In detail, the staffing function involves strategic HR planning, recruitment and selection and perfect employee placement; training and development functions entail proper organizational orientation, various training and development programs and employees’ career management and growth; the motivation function necessitates job design, fairness in the appraisal, practicing good organizational citizenship behavior with sound rewarding system and compensation packages; and finally, the maintenance function entails healthy and safe working environment, good communication and relationship management. Originality/value The study is original in developing a sustainable HR practice model with the alignment of ILO’s three inter-linked sustainability compact for a labor-intensive industry from an emerging economy perspective. The study’s outcomes will be a torchbearer for any labor-intensive industry’s sustainable HR practice from an emerging economy across the globe.