Strategic Bundling of HRM for Organizational Performance: an Empirical Study of Publicly Listed Companies

Strategic bundling of Human Resource Management (HRM)practices among themselves works together as an entire HRMsystem rather than individual HRM practices to achieveorganizational objectives. The bundles of HR practices supportthe effectiveness of one another assuming the effectivenessof any practice depends on other practices in place. It issaid that the greater the total degree of bundling among thevarious components of HRM policies and practices, the morewill be the organizational outcomes. Realizing these facts,this study aimed to explore the level of strategic bundlingand examined the impact of such bundling on organizationalperformance to the publicly listed companies of Nepal. Thisempirical study is based on description and exploratorydesign for which data collected through the questionnairebased on 5-point liker scale. Total population of the studyat the time of data collection are 234 organizations publiclylisted in Stock Exchange of Nepal. Questionnaire is distributedto all organizations listed, response received from 105organizations, as a unit of analysis, which is fairly goodresponse. The study of strategic bundling of HRM practices perhaps thefirst study in Nepal, found that only 32 percent organizationshave followed high bundling HR practices and these highbundling organizations are significantly different with lowbundling organizations. Business organizations are trying topractice being close association of HRM policies and practiceswithin them except labor relation with employee participationand business strategies. Supporting to the internationalliterature, strategic bundling of HRM practices amongthemselves shows statistically significant effects on quality of product or services, labor productivity, financial performance,employee satisfaction, rate of innovation, employeecommitment and market share.