Structure of Human Capital Enhancing Human Resource Management Practices in India
Author : Birasnav M, Rangnekar S
AbstractIn any firms, human resource (HR) practices are the direct  investments on employees’ human capital through which firms achieve  competitive advantage and employees enhance their human capital.  Recognizing the structure of HR practices comprised of distinct patterns  would maximize the chances to understand the firms’ ways of developing  core competencies. This paper analyzes 472 employees’ responses who work  in Indian manufacturing industries to identify the patterns of human  capital enhancing HR practices. Reward strategy, career-oriented  training, performance appraisal, recruitment strategy, career  management, and performance-oriented training are the patterns or  factors derived from the HR practices, and validity of this structure is  also proved by confirmatory factor analysis. Furthermore, there are  certain associations found between these patterns and characteristics of  both employees and firms from regression analyses.
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