Role of Strategic Human Resource Management Practices in Managing Dairy Farms of Australia

Abstract

Purpose- Australian dairy farming's global presence is significant, yet scholarly attention to its broader market impact is lacking. This study addresses this gap by investigating how HR practices in Australian dairy farms affect employee turnover and absenteeism.

Design/methodology/approach- The study utilized the AML (Action Mailing List) survey with 6780 Australian dairy farmers, randomly selecting 1549 for participation. 956 dairy farms received the survey pack, resulting in 362 responses. Data analysis employed listwise deletion, filtering 205 responses. Participants volunteered, assured of response confidentiality.

Findings-The regression findings reveal that targeted HRM practices lower turnover and absenteeism, yet certain practices, like annual reviews and career opportunities, are linked to higher turnover. Additionally, informal HRM practices like annual reviews and informal communication contribute to increased absenteeism. Integrated HRM practices aligned with business strategies, such as product quality and people management, predict lower turnover and absenteeism in the dairy industry.

Research limitations/implications-The study solely gathered data from managers. Future research should explore employee responses to HRM practices. A comparison of employee and owner-manager perspectives could yield valuable insights for dairy practitioners and policymakers aiming to enhance farming work practices.

Originality/value-Empirical research on HRM practices and performance in agriculture, particularly in sectors like dairy farming, is scarce. The authors address this gap by exploring the theoretical foundation of the HRM-performance connection within the dairy industry, offering insights for sustainable development.