Abstract:
Organizations experience lengthy supply chains with complex organizational structures
and networks with the globalization. Supply chain management and its functions have
been widely accepted with the terms of supply chain effectiveness and efficiency to gain a
competitive advantage over rivals. Influence of the Human Resources Management
(HRM) implications has been identified as the main element of supply chain success.
However, the Logistic Performance Index (LPI) has shown a gradual decline with the past
three years in Sri Lanka and one of the main reasons to decline is identified as poor
supply chain management. It has been mostly affected by the supermarket retail industry
which is mostly engaged with the supply chain and warehousing activities. Literature has
demonstrated that organizational performances heavily depend on individual
performances and different kinds of HRM practices enhance human performances. This
study focused to identify how HRM practices help organizations to enhance the supply
chain efficiency in supermarket retail industry. 120 middle-level employees of three
leading supermarkets were selected for the study and the study was adopted a quantitative
approach based on the survey questionnaire. Structural Equation Modeling (SEM) and
descriptive statistics were used to analyze the data to fulfill the research objectives.
Findings of the research emphasize that HRM practices such as selection, compensation,
and evaluation were at high level of adaptation in the supermarket sector and
compensation showed the highest adaptation level. Selection, compensation, and
evaluation significantly and positively impacted on supply chain efficiency in
supermarket retail sector and training was non- significant but showed a positive
relationship with supply chain efficiency. Findings of the research are important to the
top-level employees who are working in the supermarket and retail industry within the
fields of human resources and supply chains to make decisions regarding the HRM
practices and supply chain performances. HRM and supply chain policymakers will
identify the necessity of establishing HRM practices within the supermarkets to enhance
the supply chain efficiency and the existing level of HRM practices in the industry.
Keywords: HRM practices, Supply chain efficiency (SCE), Supermarket retail sector
