Mechanisms of Strategic Human Resource Management for Developing A Human-Centered Smart Factory
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Abstract
This academic article aims to explicate the mechanisms of Strategic Human Resource Management (SHRM) in the development of human-centric smart factories within the context of Industry 4.0 and Industry 5.0. Although many industrial organizations have invested heavily in digital technologies, automation systems, and artificial intelligence to enhance efficiency, flexibility, and competitiveness, existing empirical evidence indicates that a technology-centric approach that neglects human capital dimensions often leads to structural challenges. These challenges include skills gaps, resistance to change, declining employee engagement, and limitations in the long-term sustainability of organizational performance. Such issues are particularly salient in the Thai industrial context, which continues to face constraints related to digital skills, learning culture, and human resource management systems that emphasize operational roles rather than strategic functions.
This article proposes a mechanism-based conceptual framework that positions Strategic Human Resource Management as an upstream driver. The framework encompasses recruitment and selection, training and development, performance management, and reward systems, integrated with knowledge management practices. These mechanisms collectively enhance employee capabilities and engagement, fostering effective human–technology collaboration characterized by human augmentation rather than labor substitution. Downstream outcomes are reflected in improved operational performance and organizational sustainability, while organizational learning mechanisms and continuous improvement cycles function as feedback loops that systematically refine human resource management practices. The article contributes both theoretically and practically by offering an integrative reference framework for executives and human resource professionals seeking to develop sustainable, human-centric smart factories within the Thai industrial context
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