Importance of Strategic Human Resource Practices on Organisational Performance during Lean Production Situations

Abstract

In the last century Lean Production practices have revolutionised the mass production sector. Globally embraced, many of the leading organisations celebrate contributions Lean Production has made to their success through improved quality and reduced cost and human resources. With contradicting resources and abundant levels of literature on the subject, an organisation may struggle to find a starting point when looking to implement Lean Production practices on their own. In the first part, this paper seeks to define just what Lean Production is, how exactly it may be implemented and what benefits and challenges it can bring to an organisation, if properly implemented.  However, the second purpose of this paper is to identify the strategic human resource management practices suitable for the period of transition process to Lean Production and afterwards. Using a case study research in a New Zealand industry, the results show certain important factors. Four main factors are found in the various stages of the adoption and implementation process: staff training, amicable communication, just rewards, and appropriate job design. It has been identified that strategic human resource management is important not only at every stage of the transition process to Lean Production but throughout in order to obtain firm performance.

Keywords: Lean Production, Strategic Human Resource Practices, Transition Process, Waste, Performance