Validation of a Sustainable HRM Practices Scale and Employee Satisfaction in the Automobile Sector: An Empirical Study

DOI: https://doie.org/10.10399/APER.2026152225

Authors:

Siksha Rawat , Prof. Dr. Animesh Singh

Keywords:

Sustainable HRM; Employee Engagement; Employee Satisfaction; Scale Validation; PLS-SEM; Manufacturing Industry

Abstract:

This study validates an integrated Sustainable Human Resource Management (HRM) Practices Scale and examines its influence on employee engagement and employee satisfaction in the Indian automobile manufacturing sector. Grounded in sustainable HRM theory and employee-centered strategic management perspectives, the study conceptualizes Sustainable HRM as a multidimensional construct comprising Workplace Wellbeing, Employee Development and Employee Retention.

Data were collected from 523 employees working in automobile manufacturing firms in Haryana, India. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to assess the measurement and structural models. The measurement model demonstrated strong psychometric properties, with satisfactory indicator reliability, internal consistency reliability (Cronbach’s alpha and composite reliability), convergent validity (AVE > 0.50), discriminant validity (HTMT < 0.85) and acceptable model fit (SRMR < 0.08). These findings confirm the robustness and contextual applicability of the scale in an emerging economy manufacturing setting.

Structural results reveal that Sustainable HRM practices significantly enhance employee engagement, which in turn positively influences employee satisfaction. Mediation analysis indicates that employee engagement functions as a critical explanatory mechanism linking sustainability-oriented HR practices to favorable employee outcomes.

The study contributes to the Sustainable HRM literature by offering empirical validation of a multidimensional measurement framework in a non-Western industrial context and by clarifying the mediating role of engagement. Practically, the validated scale provides manufacturing organizations with a diagnostic tool to assess and strengthen sustainability-driven people management systems, thereby supporting long-term employee wellbeing and organizational resilience.

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