The role of human resource management in operational strategy changes

Abstract

The apparel industry worldwide is changing from MTS to MTO production to offer more personalized products, faster shipping, and efficient stock management. This shift increases flexibility in RMG factories but also causes HR challenges for Bangladesh’s garment sector. This study investigates the strategic role of human resource management (HRM) in facilitating such transitions. According to this study report, Bangladesh's RMG transition from MTS to MTO systems depends on efficient HRM procedures such as workforce planning, training, performance tracking, and leadership adjustments. The study emphasizes how the HRM requirements of MTO (flexible, quality-focused) and MTS (specialized, volume-driven) differ. It also highlights the main obstacles to switching between them, such as misaligned incentives, unwillingness to change, and skill shortages. According to the study, modular training, hybrid incentive systems, peer-based upskilling, and culturally sensitive changes are examples of adaptive tactics. The study also suggests practical HRM solutions for improving efficiency in Bangladesh’s garment industry. It contributes to academic research on HRM’s proactive role in production transformation, and it also provides actionable recommendations for RMG stakeholders (e.g., manufacturers, HR professionals, policymakers) to build stronger and more competitive garment businesses.