The impact of strategic human resource management on firm performance and HR professionals' work attitude and work performance

Abstract

The impact of strategic human resource management (SHRM) on organizational performance is assessed. Additionally, the impact of a SHRM approach on the individual performance, organizational commitment and job satisfaction levels of human resource professionals is investigated. An organization exhibits SHRM when the human resources function is vertically aligned with the mission and objectives of the organization and horizontally integrated with other organizational functions. Data from a national sample of 269 human resource professionals from large US manufacturing firms were analyzed using structural equation modeling techniques. Results indicate that the direct impact of SHRM on organizational performance is positive and significant, as hypothesized. Further, SHRM was found to directly and positively influence individual performance, organizational commitment and job satisfaction. Top managers implementing a SHRM system can, therefore, expect improved organizational performance and improved levels of individual performance, job satisfaction and organizational commitment from the organization's human resource professionals.

Keywords:

• Strategic human resource management
• organizational performance
• individual performance
• organizational commitment
• job satisfaction
• structural equation modelling