The Role of Labour Regulation in Enhancing Human Resource Management Effectiveness

Abstract

The effectiveness of human resource management (HRM) is increasingly shaped by external institutional environments, particularly labour regulation. While labour laws are designed to protect workers’ rights, their role in enhancing HRM effectiveness remains underexplored in empirical research. This research examines the influence of labour regulation on HRM effectiveness by analyzing three regulatory dimensions: regulatory compliance, labour regulation flexibility, and legal certainty. Using a quantitative explanatory design, the research employs simulated empirical data from 180 human resource managers and officers and applies multiple linear regression analysis. The results reveal that all three regulatory dimensions have a positive and statistically significant effect on HRM effectiveness, with legal certainty emerging as the strongest predictor. The regression model explains a substantial proportion of variance in HRM effectiveness, indicating a strong overall model fit. These findings suggest that labour regulation functions not merely as a compliance requirement but as a strategic institutional framework that can enhance HRM effectiveness when designed with clarity, balance, and adaptability. The research contributes to the interdisciplinary literature by empirically integrating labour law and HRM perspectives and offers practical insights for policymakers and organizations seeking to align regulatory objectives with effective human resource management.