Strategic HRM for Harmonious Industrial Relationship: A Governance and Ethics Framework for Transparent Decision-Making and Policy Formation

Abstract

In today’s evolving industrial landscape, integrating Strategic Human Resource Management (SHRM) with governance and ethics plays a vital role in fostering harmonious workplace relations.

This study explores how SHRM practices contribute to transparent decision-making and ethical policy formulation, enhancing industrial harmony. Using data from 210 HR professionals, line managers, and union representatives in mid to large-sized Indian manufacturing and service firms—supported by a case study of a major manufacturing company—the research employs structural equation modeling (SEM) to assess key relationships. Findings reveal that participative decision-making, performance-based appraisals, and transparent grievance mechanisms significantly improve industrial relations. Governance quality and ethical climate act as key mediators, strengthening trust, communication, and policy clarity between management and employees.

The study offers both theoretical insights and practical implications, demonstrating that SHRM, when aligned with ethical governance, can be a powerful driver of industrial peace and sustainable organizational growth.