Jour of Adv Research in Dynamical & Control Systems, 07-Special Issue, July 2017 Special Issue on Management Studies A Study on Effect of Human Resource Practices on the Performance of Textile Processing Units in Tamil Nadu C. Loganathan, Research Scholar PhD in Management, Department of Management Studies & Research, Karpagam University, Coimbatore, India. E-mail:clogu77&gmail.com Dr.A. Dharmaraj, Associate Professor, Department of Management Studies & Research, Karpagam University, Coimbatore, India. E-mail:dr.a.dharmaraj@gmail.com Abstract--- This paper is an attempt to “Study the effect of Human Resource Practices on the performance of textile processing units in Tamil Nadu”. India is the second largest textile industry in the world and the textile industry has been facing new challenges in work environment which necessitated the requirement of new technology, talent and ability in Human resources. It further explores the different HRM practices in textile industry and has critically reviewed in this paper, in which a descriptive design has adopted. A research survey was conducted in order to collect the primary data which was structured around demographic profile, general background and opinions on several HRM practices in selected textile processing units. The general background findings give an idea of the presence of active HRM department, presence of well-defined HRM practices and policies, consistency between the discourses of HR policies and if HR department provides with training opportunities in order to enhance their skills and career path. The HRM practices which the researcher has considered are staffing practices,training and technology development practices, performance appraisals, compensations and incentive related practices, unionization practices, team work and employee participation practices and work conditions and related practices. The most effective practices were found to be staffing and training practices, unionization practices and also compensation and incentive practices. Keywords--- Textile Industry, HRM Practices, Staffing, Training, Performance, Unionization, Textile Processing Units, Tamil Nadu. I. Background of the Study A. Overview of HRM in Indian Textile Industry India is the second largest textile industry in the world after China, and provides employment to 38 million people, thereby facing continuous pressure to maintain the reputation in the market (Dhevan 2015). However, the textile industry is facing new challenges in the work environment which necessitated the requirement of new technology, talent and ability in the Human Resources (HR) department in the textile industry. The textile industry brings in 27% of the foreign exchange for the country by exporting textiles hence it has become a prime concern to bring in changes in the HRM policies in this industry, given it contributes in a bulk to the GDP(Jessica & Marimuthu, 2013). The major contributing states in India for the textile industry are Delhi, Maharashtra, Tamil Nadu and Karnataka. With the development and adoption of new technology, the textile industry is facing shortage of qualified and efficient human resource team for an organization(Lohar & Bide, 2013). Subsequently, issues like unawareness of new technologies, lack of research and development, lack of qualified workers, lack of training have become a challenge to these organizations, especially to the Human Resource department. HRM practices are a set of internally consistent policies which are designed and implemented to make sure that an organization’s human resource contributes in achieving a certain goal for the organization (Singh & Jain, 2014). Given these challenges for the human resource department, managers and organizational policies need to focus on training and improvement of employee performance (Lohar, G,Anil. Bide, K, 2013). The Indian textile industry is presently facing massive structural changes, where the companies have raised their national and international standards and are also aimed at improving their human resource related strategies to maintain a brand reputation as well as to bring in an effective overall growth (Tandon & Reddy, 2013). According to the study, by Dhevan, (2015), common HRM practices issues among textile mills workers were found, such as low pay and lack of training in order to get updated with the new technologies, signifying the need for updating of such practices within the sector. Textile processing units are supportive factor for textile industry. Manpower is the effective resource for textile sector. The effective HRM practices are required to enhance the performance of a textile organization. (Hassan, S. 2016). ISSN 1943-023X 44