SHRM and capacity building and its impact on management employees in foreign companies in Laos

Abstract

Strategic Human Resource Management (SHRM) in capacity building can enhance the capabilities of an organisations’ workforce, which is a key value in achieving high levels of productivity. In the Laos Peoples Democratic Republic (PDR), there are numerous foreign investments to assist the country in its economic development efforts. Investors, however, require a competent local workforce to operate their businesses, especially at the management level.

The main aim of this research paper is to determine the problems associated with the implementation of SHRM in capacity building of local managerial employees working in foreign businesses in Laos and how to avoid it. Semi-structured interviews was the main data collecting technique involving eleven participants from seven foreign businesses operating in Laos PDR during 2015.

The findings revealed that capacity building for local managerial employees was not executed effectively. Obstacles preventing the implementation and practice of SHRM in capacity building, include limited budgets, few roles created in HRM at a strategic level, insufficient qualifications of local managerial employees and unsuitable development programmes for capacity building. A model was developed which outlines suitable steps for capacity building of the local managerial employees working in foreign businesses in Laos, to improve their performance and productivity.