Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 3

Model of Human Resource Management and Development with Appropriate Strategies for Large-Scale Factories in Bangchan Industrial Estate in Thailand

Ekkasit Sanamthong, Ramkhamhaeng University

Wattanasom Meksuwan, Ramkhamhaeng University

Abstract

The research studied the model of human resource management and development with appropriate strategies for in Bangchan Industrial Estate in Thailand. It was conducted in the following processes: 1) studied the components of the model of human resource management and development and conducted in-depth interviews with 20 key informants 2) constructed a draft model and appropriate strategies based on the hypothesis model derived from the study in step 1 and 3) evaluated the model which consisted (1) leveraged connoisseurship from the nine experts to consider and conclude the model and (2) leveraged an assessment form to evaluate the correctness, appropriateness and feasibility.

The research revealed the following: (1) the model consisted of four main components. Component 1 “Acquiring of human resource” included 1.1) Recruitment 1.2) Selection; Component 2 “Human resource development” included 2.1) Orientation session 2.2) Trainings 2.3) Development; Component 3 “Retention of human resource” included 3.1) Compensation and benefit management 3.2) Environmental management in organization 3.3) Employee relations management; and Component 4 “Appropriate strategies for human resource management and development” included 4.1) Planning and management strategies 4.2) Teamwork strategies 4.3) Transformational leadership strategies (2) The draft model was correct, appropriate, feasible, and functional at the highest level in all components (3) The model was appropriate and applicable in the factories context.

Keywords

Model, Strategies, Human Resource Management, Human Resource Development.

Introduction & Literature Review

The changes in management environment, economic system, technology, population structure, and relation among organization and employees constitute challenging problems for every organization. Under the intense economic competition in the global arena, high caliber human resource will enable an organization to succeed and accomplish the organization’s objectives. They would enhance the organization’s competitiveness to stand with pride and sustainability in the world (Na-Nan & Sanamthong, 2019). It is crucial that the efficiency of human resource management and development must concretely take place. The research of Ing-on Tanphan (2015) was conducted on employee attachment at the supervisory level to companies in Bangchan Industrial Estate in Thailand. The findings revealed that the behavioral factors in complying with the organization’s rules and regulations meant that the organization providing for appropriate human resource management and development system would be an important component to enable itself to win this intense competition. The creation of “Talent” was a crucial driver of the organization to overcome the challenges that it was facing. For business operation, activities on human resource management and development were considered as supporting units to acquire an important method which would drive towards accomplishment (Na-Nan et al., 2019). Nearly every organization was related to human re-source because it was a mechanism that drove activities of an organization with efficiency and effectiveness (Ulrich & Lake, 1990).

Industrial Estate Authority of Thailand is considered as a location that includes organizations which are the country’s units of economic sub-system. Bangchan Industrial Estate was the first industrial estate established in Thailand in 1972. The Industrial Estate was therefore ranked as one of the country’s top industrial estates encompassing 65 factories according to the Factory Act. Its industries included automotive, plastics, artificial leather, fertilizers, paints, food chemicals, beverages, wood, furniture, electrical appliances, electronics, and others (Industrial Estate Authority of Thailand, 2017). “Human Resource” constituted an important component as a driving force for substantial results. Therefore, human resource management and development system is a crucial concept in driving the direction and policy of national development strategy towards concreteness.

Therefore, the study on model of human resource management and development with appropriate strategies was conducted. The strategic model derived from the research would serve as a reference model for further application in formulating strategic operation of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, resulting in highly efficient, sustainable operation.

Methodology

The research aimed to construct the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand. The researchers used the methods of Qualitative Research with the details and methodology as follows:

Part 1 Study of the components of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand. The study was conducted through In-Depth Interview with Semi - Structured Interview from Key Informants who were 20 executives responsible for human resource management and development from 20 large-scale factories in Bangchan Industrial Estate in Thailand or one executive per factory. The determined qualifications of the key informants included executives in human resource management with over five years of working experience. The information obtained from the interviews was analyzed, synthesized, and classified into major issues by using the Content Analysis. Then, the information was presented with the Descriptive Analysis which was an essay or article showing the data and information obtained from the key informants (Suwatanpornkul, 2019).

Part 2 Construction of the model of human resource management and development with ap-propriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand. The researchers constructed the draft model based on the Hypothesis Model which was the theoretical model or model-for. It was the model constructed from the conceptual framework based on theories (Steiner, 1981) from the data derived from the study of concepts, theories, related research results, and information from the interviews with the key Informants.

Part 3 Evaluate the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand consisted of 2 parts 1) through focus group session with experts (Connoisseurship) to evaluate, consider, and judge the value in order to conclude the comments on the model of appropriate strategies from three groups of experts namely (1) three experts who were executives charged with human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand (2) three experts who were professionals in the field of human resource management and development and (3) three expert who were academics in the field of human resource management and development, in total nine persons. 2) Using an assessment form developed by the five experts from academics and professionals, to evaluate the correctness, appropriateness and feasibility.

Results

Part 1 The study results of the components of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand revealed the components of the model of human resource management and development with appropriate strategies for large-scale factories obtained from the key Informants. The researchers conducted the Content Analysis and presented the information based on the Descriptive Analysis which was an essay or article showing the data and information obtained from the key informants. They found that there were four components namely (1) “Acquiring of human resource” with the following activities a) Recruitment and b) Selection (2) “Human resource development” with the following activities a) Orientation session b) Trainings and c) Development (3) “Retention of human resource” with the following activities a) Compensation and benefit management b) Environmental management in organization and c) Employee relations management and (4) “Appropriate strategies for human resource management and development” with the following activities a) Planning and management strategies b) Teamwork strategies and c) Transformational leadership strategies.

Part 2 Based on the results of the construction of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, the researchers constructed the model based on the Hypothesis Model which was the theoretical model or model-for. It was constructed from the conceptual framework based on theories, as well as information obtained from the interviews with the key informants. The study results of the model in Process 1 yielded the draft model as follows: (1) “Acquiring of human resource” was an important component of the model of human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand that should be focused on as it was an important process when major resources entered the factories. Executives and those responsible for human re-source management and development must take into account the activities to acquire human resource with knowledge, ability, and quality to work in the factories with two major activities namely 1) Recruitment and 2) Selection (2) “Human resource development” was the second component which was important for the model of human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand. It constituted a crucial process where the factories would be in possession of the process to develop potential of employees operating in the factories. Therefore, executives and those responsible for human resource management and development must pay attention and focus on seeking the guideline or determine the activities that would enhance knowledge, understanding, skills, and attitude, including focus on changes in employees’ behavior to demonstrate high potential in performing work. It was divided into three main activities namely 1) Orientation 2) Trainings and 3) Development (3) “Retention of human resource” was yet another important component of the model of human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand. It was an important process where factories must construct the tool for motivation, inspiration, and stimulation to morally strengthen the employees operating in the factories. Executives and those responsible for human resource management and development must take into account the activities to retain human resource, leading to organization’s attachment, and resulting in members’ good behavior towards the organization. It consisted of three main activities namely 1) Compensation and benefit management 2) Environmental management in organization and 3) Employee relations management and (4) Strategies to promote effective and efficient operation in human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand. It consisted of three main strategies namely 1) Planning and management strategies 2) Teamwork strategies and 3) Transformational leadership strategies. The key informants made additional suggestions on the presentation of the major model of human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand. Guideline must be sought of various methods based on the activities in each component for the appropriate model of human resource management and development of large-scale factories in Bangchan Industrial Estate in Thailand.

Part 3 The evaluation results of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand are as follow 1) through focus group session (Connoisseurship) revealed that the overall model was appropriate and able to apply to real situations in operating human resource management and development under the context in the factories. It was the experts’ views to add empirical information to the constructed model as mentioned by the key informants to serve as the main methods or tool for implementation. Therefore, the content of methods should be added in the implementation of activities as follows: (1) Recruitment at factory site, announcement on website, Jobs Fair (2) Selection such as online examinations in terms of both Logical and Technical, interviews, knowledge testing, skill testing, and understanding (3) Orientation such as supervisors providing knowledge and understanding of various topics (4) Trainings such as individual development planning, external and internal trainings, and on the job training (5) Development such as coaching, system of facilitator, knowledge management (KM), preparation of self-learning (6) Compensation and benefit management such as bonus, good welfare such as lunch and welfare for other livelihoods, or buffet welfare (7) Environmental management in organization such as Happy Workplace, safety and good environmental management and (8) Employee relations management such as activity arrangements to enable employees’ participation with their companies such as Family Day to be inserted in the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand for the complete, constructed model. Moreover, the experts put forward recommendations for the complete model as follows: (1) On recruitment, the experts recommended additional methods to recruit quality human resource into the factories such as cooperation with Department of Employment (2) On development, the experts recommended an additional method of mentoring system to take care of colleagues into the draft model as well and (3) On the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, the experts recommended additional factors related to formulation of strategies such as analysis of internal and external environments into the constructed model and 2) the evaluation results of correctness, appropriateness, feasibility, and usage of the model revealed that experts commented that all components of the model and activities, including strategies, were correct at the highest level (=4.66), appropriate at the highest level (=4.62), feasible at the highest level (=4.64), and functional at the highest level (=4.66).

Therefore, based on the evaluation results of the model, the research team developed the model until it achieved the complete model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand as in Figure 1.

Figure 1: Model of Human Resource Management and Development with Appropriate Strategies for Large-Scale Factories in Bangchan Industrial Estate in Thailand by Experts

Discussion

Based on the research on the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, the discussions of the results were as follows:

The model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand consisted of four main components as follows:

1. Component 1“Acquiring of human resource”: Based on the study results of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, the mission of “acquiring of human resource” was the process to smoothly support the factories’ operation in line with the factories’ objectives. It was the initial mission of human resource management system by which those involved in human resource joined hands in planning the demand of human resource, work analysis, description of work, determination of the qualifications of employees in order to recruit and select the employees with necessary qualifications as required by the organization. This was in line with the concept of Mondy (2014) who explained about the activities of an organization to determine the planning process of recruitment and selection of talented employees to work in the organization in order to enable the organization to accomplish its set objectives. Based on the interviews, it was found that the major component of “acquiring of human resource” consisted of two activities namely 1) Recruitment was in accordance with the study of Buntham (2016) on the model of human resource management and work-life balance in relation to organization’s attachment. It revealed that recruitment of human resource was important to the human resource management system, resulting in employees’ attachment to their organization. It was also in accordance with the research of Pimphrachan (2015) on the model of skilled labor force management. The research results revealed that skilled labor force management of Happ Exhibition Co., Ltd. mentioned two channels of recruitment namely recruitment within an organization such as internal bill-board, P.A. announcements, friend-to-friend project, and recruitment from outside such as website, bill-board in front of the company and 2) Selection. This was in accordance with the study of Buntham (2016) on the model of human resource management and work-life balance in relation to an organization’s attachment. The study found that selection of human resource was important in human resource management system, resulting in employees’ attachment to their organization. The study was also in line with the research of Pimphrachan (2015) who studied the model of skilled labor force management. The research results revealed that the skilled labor force management of Happ Exhibition Co., Ltd. dealt with the selection by using the selection criteria in two dimensions namely consideration of recommendations from internal employees and consideration of working experience.

2. Component 2 “Human resource development”: Based on the study results of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, the mission of “acquiring of human resource” was a process that supported the operation of factories in the development of employees’ potential working in the factories. This was in accordance with the concept of human resource development of Gilley et al. (2002) who suggested that human resource development was a process of learning, enhanced work efficiency, and human beings’ changes for the better through various activities. This was also in accordance with the concept of Sanamthong (2015) who argued that human resource development for higher potential was the mission that must be operated through activities in providing knowledge, understanding, skills, and attitude, as well as changes of good behavior at work to increase the employees’ potential so that they could perform their work to the utmost of their ability. The interview results found that the major activity of “human resource development” of large-scale factories in Bangchan Industrial Estate in Thailand was divided into three activities as follows: 1) Orientation which was in line with the concept of Ulrich & Lake (1990) who discussed the objectives of human resource management in terms of orientation as an introductory activity to prepare employees for work. This was in accordance with the research of Kittirudeekul (2018) who found that the use of human resource was the duty of directing the existing employees to have the opportunity to fully demonstrate their own ability in performing work for the organization’s maximum benefit through various processes such as placement, orientation, and probation, etc. 2) Training which was in line with the concept of Ulrich & Lake (1990) who argued that the objectives to insert human resource management as part of training was to serve as a guideline to promote and develop the employees’ competency to further develop their potential. It was in compliance with Nadler & Wiggs (1989) who also argued that training was one method of human resource management and a process of systematic planning to develop employees’ potential in performing their work and improve efficiency in their organization’s operation. It was also in accordance with the research of Sermsri (2015). The study results found that human resource management in the opinions of employees of a company in Amata City Industrial Estate, Chonburi, was overall at a high level. The relation testing revealed that the human resource management in eight dimensions all had positive relation with the organization’s attachment, especially the high level of relation in terms of training and human resource development and 3) Development which was in line with the concept of Nadler & Wiggs (1989) who recommended the guideline of development as determination of methods, guideline, model, or process to produce and develop employees, enabling the organization’s employees to increase knowledge, demonstrate their ability, and express themselves, as well as the opportunity for them to bring out their hidden ability and potential. It was in accordance with the research of Pinthong (2018) who found that there were ten components of human resource management namely compensation, work design, occupational development, motivation and benefit, work analysis, work-life balance, training and development, employees and labor relations, performance management, and employees’ safety. The evaluation of the ten components of human resource management revealed that the implementation was at a high level in all components (Na-Nan, 2019).

3. Component 3 “Human resource retention”: Based on the study results of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, the mission of “retention of human resource” constituted the role of factory executives to ensure that the willing employees were continuously qualified, committed, and useful to the organization. This was in line with the concept of Mondy & Noe (2004) who argued that the retention of human re-source was the practical guideline related to human resource in working place, especially compensation and salary management, motivation and benefit, performance evaluation, including attachment forged between organization and employees. This was in accordance with the research of Sermsri (2015) who found that the retention of human re-source was a major process with positive relation to organization’s attachment, with the relation of the statistical significance at the level of 0.01. The interview results revealed that the important activity of the “retention of human resource ” of large-scale factories in Bangchan Industrial Estate in Thailand was divided into three activities as follows: 1) Compensation and benefit management which was in accordance with the concept of Mondy (2014) who explained about compensation and benefit management as the determination of various methods in response to the demand of employees through motivation for performing their duties with efficiency, as well as boosting their morals. This was in line with the research of Pimphrachan (2015) and Pinthong (2018) the results of which revealed that compensation and benefit management was in the same direction and that compensation and benefit management was divided into two dimensions namely compensation/salary and basic welfare. The model of human resource management related to compensation and benefit management impacted the employees’ attention to perform their duties and continuation in their organization 2) Environmental management in organization was in line with the concept of Ulrich & Lake (1990) who mentioned the objectives of human resource management and that the development of environment at work encouraged teamwork and flexibility as a crucial part in the operation of human resource management in organization. Mondy (2014) also argued that the environmental management in organization in the same direction enabled the organization’s operation to have good environment and safe working process from any eventuality such as accident, bodily or mental harm, or occupational health hazard, due to work or related to work, as well as organization management for good working environment. This was also in line with the research of Pinthong (2018) related to the influence of human resource management on the retention of engineers in Generation Y in an industrial estate in Rayong (Thailand). It revealed that human resource management was divided into ten components namely compensation, work design, occupational development, motivation and benefit, work analysis, work-life balance, training and development, employees and labor relations, performance management, and employees’ good environment and safety. This was in compliance with the research of Pimphrachan (2015) who discussed three dimensions of environmental management at work consisting of location, safety, and social issues. This was in line with the important guideline of the model of skilled labor management of Happ Exhibition Co., Ltd. and 3) Employee relations management which was in accordance with the concept of Mondy (2014) as the activity that forged good relation among all people in an organization from employers, employees, supervisors, and subordinates, thanks to interrelation and linkage to the same success of the organization. It was in compliance with the research of Amonwitawat (2012) who found that employees had good quality of life at work and effectiveness in terms of the overall employee relations. It was also in line with the research of Pinthong (2018) who found that employee relations management was an important component in the process of human resource management which impacted the employees’ intention to continue working in their organization at a statistical significance.

4. Component 4 “Supporting strategies”: The study results of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand revealed that the model of effective and efficient human resource management and development required appropriate strategies that would support the process of human resource management and development under the context of large-scale factories. The strategies should be formulated at the operating level as defined by the business to serve as the guideline of the organization’s human resource management, leading to the organization’s success and achievement in competition, or accomplishment of its set vision, mission, and objectives. The interview results revealed that the major strategies that supported the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand consisted of three strategies namely 1) Planning and management strategies according to the concept of Noe et al. (2006) and Bohlander & Snell (2010). who discussed the importance of planning and management under the operation of human resource management which required system, management, and planning according to policy, practice, system, guideline of various competencies to determine the direction of human resource management in organization in the efforts to reach the determined objectives. It was also in line with the research of Mahamud, Tanpan, and Suksartkawin (2018). The research revealed that the prototype of human resource management in business organization consisted of strategies, common norm, executives’ work style, structure, employees’ skills, skills, problem solving, management system, and employees with qualifications appropriate to the work under responsibility 2) Teamwork strategies according to the research of Runpho (2017) on the development of the model of human resource management towards strategic partnership of non-profit organization. It was found that the components of the model of human resource management towards strategic partnership of non-profit organization were divided into four dimensions as follows: 1) Strategic partnership 2) Transformational leadership 3) Management experts and 4) Winning the hearts of employees. Each component would be undertaken under the process that required joint systematic operation and teamwork. Teamwork would foster the power to compete with external competitors and enable employees in the organization to work in the same direction, and reach the organization’s main objective and ultimate goal and 3) Transformational leadership which was in line with the concept of Phetsombat (2017) demonstrating the three components of leadership skills as follows: 1) Specific leadership characteristics consisting of participation in decision-making of planning of teamwork and communication 2) Leadership characteristics consisting of creation of vision, creation of virtue, consideration of individuals, motivation to use wisdom and inspiration and 3) Executives’ skills consisting of concept, human relations, teaching technics, and knowledge and understanding which was a process of development of human lives and society as valuable resources, constituting an important factor that would enable an organization to develop and keep abreast with rapid changes. It was the creation of an organization’s human capital towards the country’s sustainable development.

Based on the evaluation results of the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand, experts recommended the addition of analysis of internal and external environments in the model of human resource management and development with appropriate strategies for large-scale factories in Bangchan Industrial Estate in Thailand as a major factor to determine the model of human resource management and development with appropriate strategies. This was in line with the concept of Mondy (2014) who argued that environment was the issue that an organization must take good and careful consideration because it was what the organization could control with great difficulty. As for the issue of human resource management and development, the environment would impact an organization’s management, planning, decision-making, formulation of strategies, mission, vision, and operation.

Conclusion

The strategic model human resource management and development for large-scale factories in the Bangchan Industrial Estate in Thailand can be adapted and applied to the human resource management and development operation in large-scale organizations. The model consists of three key components of human resource activities: (1) analyzing organization & developing appropriate strategies for managing and developing human resource (2) developing missions and activities i.e. acquiring, developing and retaining human resource, and (3) formulating strategies/methods and practices for managing and developing human resource. All three components will be conducted step by step to support the activities. The recommended model and strategies can be applied not only to large-scale organizations but also to smaller scales.

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