Human resource management practices and employee engagement: the moderating effect of supervisory role

Abstract

Using the assertions of the social exchange theory, this study investigates the moderating effect of supervisory role in human resource management (HRM) practices and employee engagement relationships. This study used a cross-sectional survey design and collected data from 280 employees in Bangladesh’s readymade garments (RMG) industry. We tested the hypothesized model in SMART-PLS software through a structural equation model (SEM). An importance-performance matrix analysis (IPMA) was also performed to prioritize managerial actions. According to our findings, HRM practices have a significant relationship with employee engagement in the RMG industry, and the supervisory role of line managers moderates this relationship. Specifically, employee engagement increases in tandem with positive supervisory roles and vice versa. The IPMA analysis demonstrates that training and development is the most important determinant of employee engagement. Firms will benefit from increased employee engagement if line managers are empowered to implement HRM practices. This study expands the employee engagement literature by investigating different aspects of HRM practices in a globally dominant labor-intensive industry. It highlights the priority areas of HRM practices to foster employee engagement. However, the study is limited to Bangladesh’s RMG industry, though the findings are more applicable to labor-intensive manufacturing industries. Therefore, a full-length generalization across industries might not be feasible.